Provider LV is simplifying its pension charging structure following feedback from advisers.
The new charging structure will apply to pensions taken out from this month (July) and is designed to be “easy to understand” and “extremely competitive”.
Following a market review and feedback from advisers, policyholders will now pay a wrapper fee on the first £700,000 of their pension investments, but no charges will apply to sums over this level.
A minimum wrapper charge of £195 is also being introduced.
Clive Bolton, managing director at LV savings and retirement, said: “These changes are another example of how LV is evolving to support our customers with value for money charges that enable them to mix and match their investments.
“We have done a huge amount of work refreshing our pension range to make it more appealing to advisers and their clients.
“We have extended our online valuation service, removed the drawdown fee for new customers and these latest changes make LV= more competitive, particularly for those with pension funds between £100,000 and £500,000."
He added: “Throughout the rest of the year we’ll be introducing a series of improvements as we continue to develop our range of pensions, investments and retirement products for this customer segment.”
LV’s Flexible Transitions Account is a personal pension plan which offers a range of investment options, including a self invested personal pension (Sipp) option.
It is made up of three components, including LV Core, LV Selected and LV Extended.
LV Core offers a range of active and passive insured funds including LV’s Smoothed Managed funds.
Under this proposition charges are 0.2 per cent for amounts up to £700,000 with no charge for amounts above £700,000.
LV Selected includes eight discretionary fund managers (DFMs) and charges are 0.25 per cent for amounts up to £700,000 and no charge above this figure.
LV Extended offers additional DFMs and commercial property with charges of 0.3 per cent up to £700,000 and no charges on funds above £700,000.
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