26th November 2014
Axa Wealth is set to it remove the regular charges on both its Pension Investment Account and drawdown services available via the Elevate platform.
The charges will be removed for all new and existing customers from January 2015 in response to new pension freedoms being introduced by the Government, which will give older people much more flexibility over how they choose to take an income in retirement
David Thompson, managing director of business development and proposition at AXA Wealth, said: “The changes introduced at the Budget have altered the pensions landscape dramatically.
“But despite the changes, advisers and their clients still fundamentally want to keep control over and grow their investments and generate a dependable income in retirement.
“Removing these charges from January will help advisers and their clients take advantage of the flexibility offered by the new pension rules. It also forms part of our focus on transparency, simplicity and clarity in our charges to make investing easier for all.”
Axa Wealth said it expects the pension changes coming into force in the next financial year to accelerate flows onto platforms.
Thompson added: “Platforms allow for wealth to be spread easily over multiple tax wrappers, offering flexible ways of retrieving income and a place to store and invest money.
“As part of our response to the pension changes we are also set to launch a new flexible drawdown service via the Elevate platform, which will form part of the online income options we already provide through the Elevate Pension Investment Account.”
The current regular annual charges on AXA Wealth’s Elevate platform are £12 per quarter for the Pension Investment Account and £20 per quarter for drawdown services.