Zurich slashes platform charges for higher-value portfolios

Zurich is making a play for the retirement market by more than halving its platform prices for larger portfolios, the company has announced.

The percentage charged to investors with portfolios valued at more than £1m is cut dramatically from 0.22% to just 1%.

And the entry-level for the top tier is being cut from £1m to £500,000 so that investors between those two figures will see a larger reduction, from 0.27% down to that 1% figure.

Assets under administration of between £250,000 and £500,000 will see a modest drop from 0.27% to 0.25%.

Zurich retail platform strategy head Alistair Wilson, pictured left, says that the company is using scale and volume to pass on these lower rates to investors.

The new rates are likely to prove attractive to investors who look to take advantage of pensions freedoms to combine their savings into one fund.

He said” “With annuities in decline, consumers are increasingly consolidating their defined contribution pots as they look for a single and more easily manageable income.

“This trend is likely to continue as more affluent baby boomers move into retirement.”

He added: “We are significantly lowering our platform fees for higher investments to ensure we are well-placed to meet this demand and drive greater value for consumers.

 Wilson says the pricing changes will apply to both new and existing customers and those who have accumulated assets through family linking will also be eligible for lower tariffs. The new rates will apply from 1 January 2018.




Eugene Costello
Eugene Costello has been a journalist for some 20 years, and has written for a wide variety of UK and international newspapers and magazines.

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