Phoenix Life cuts exit charges

Man running away

Phoenix Life, the pensions company that specialises in taking on other insurers’ historic savings plans, has dropped exit fees for 150,000 customers who have benefits worth less than £5,000. The move will make it easier for such savers to transfer savings to another pension provider – moving their money into a larger pension fund held elsewhere, for example.

Phoenix Life’s decision is significant because it looks after thousands of savers who have ended up with it after their plans were transferred from other companies. In recent years it has taken on policies from large insurers including Standard Life, AXA, Abbey Life and Sun Life.

Some savers have money invested with other providers in plans opened more recently, and would benefit from being able to consolidate their savings. The move also follows pressure from regulators on exit fees. The Financial Conduct Authority has banned pension providers from charging exit fees of more than 1%.