LV= scraps pension wrapper exit fees

The move will offer customers the freedom to switch to another product or provider if they wish to do so without incurring a charge.

In May, The FCA announced that firms will not be able to apply any exit charge for personal pension contracts entered into after new rules come into force.

For existing contract-based personal pensions, including workplace personal pensions, early exit charges will be capped at 1% of the value of a member’s pot.

John Perks, Managing Director of Retirement Solutions at LV=, said: “We believe shopping around is critical to good consumer outcomes in retirement – and one of the key reasons stopping people from doing so is excessive exit charges. Earlier this year we committed to the removal of all pension wrapper exit fees by the end of 2017 so I’m delighted that we’ve managed to beat the target by 12 months, waiving all pension wrapper exit charges by the end of 2016. As a modern mutual, we remain committed to ensuring our members have access to good value, transparent products that enable them to get the best outcome for their retirement needs.”