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LV= scraps pension exit fees


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LV=, the insurer, is to scrap exit fees for greater than One Hundred Twenty,000 of its pension Buyers in advance of regulatory motion to curb excessive prices.

On Wednesday, LV= will announce that as of January 1 next 12 months, Consumers will not incur an exit rate if they wish to swap to every other product or supplier.

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Buyers wishing to money in their pensions prior to this date shall be subject to an exit charge, which LV= says can be as so much as 2.5 per cent of the unique investment value of their pension.

The action with the aid of LV= comes as other insurers act to scrap or minimize pension exit fees, ahead of the introduction of a 1 per cent cap on the charges in power from March subsequent yr.

“We imagine buying around is very important to excellent shopper outcomes in retirement — and probably the most key causes stopping individuals from doing so is excessive exit fees,” stated John Perks, managing director of retirement solutions at LV=.

“Previous this 12 months we committed to the removal of all pension wrapper exit charges by way of the tip of 2017 so I’m delighted that we’ve managed to beat the goal by using Three Hundred And Sixty Five Days, waiving all pension wrapper exit prices by means of the tip of 2016.”

Ultimate week, Outdated Mutual, the insurer, said it could cap exit fees at 1 per cent for about 3,400 Customers aged 55 or over with “older-model” pensions. The cap would come into position within the final quarter of 2016.

The transfer followed proposals by means of the Monetary Conduct Authority and Pensions Regulator to cap exit fees at 1 per cent for over-55s making the most of new freedoms to spend their pension money as they need.

The proposed cap won’t cover exit charges on pension savers invested in “with-profit” dollars.

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