Old Mutual Wealth cuts charges
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Old Mutual Wealth cuts charges

09/10/2014

Old Mutual Wealth has today announced that it will be simplifying its charging structure by removing the annual pension drawdown fee and scrapping the current minimum charge on its platform. The changes will come into effect on 1 January 2015 and are designed to make Old Mutual Wealth better value for smaller investments and for customers looking to take advantage of the new pension withdrawal rules.  

Removal of drawdown charge

The decision by Old Mutual Wealth to remove its drawdown fee, currently set at £58.20 per annum, comes in the wake of the Government’s Budget pension changes which come into effect in April 2015. The new rules giving greater flexibility to how people access their retirement savings are likely to result in an increasing number entering drawdown instead of purchasing an annuity. Around 8,000 Old Mutual Wealth customers currently in drawdown will benefit from the removal of the charge.

Removal of minimum charge

Currently anyone with investments of less than £20,000 on Old Mutual Wealth’s unbundled charging basis pays a minimum charge of £99.96 per annum. The removal of the flat minimum monetary charge creates better value for smaller investments and ensures the charging structure can be easily understood by both financial advisers and customers.

Tom Hawkins, Head of Financial Solutions at Old Mutual Wealth, comments:

“By removing our drawdown fee and the current minimum charge on the platform our customers will only pay one fee. Additional layers of charges, such as those for switching, drawdown or exit charges are hazardous for customers as they can never fully predict future behaviour and therefore how much they will pay in the longer term.

“Following the Budget announcements, we believe drawdown charges should become obsolete. People will be given greater freedom as to how they access their pension savings and they will not expect to be charged extra for those freedoms. For providers, the new rules will remove much of the administration associated with income drawdown making an extra charge unnecessary. We are making this option more affordable for people at a time when it is becoming more attractive.”   

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.