LV= has removed all pension exit charges from its products, allowing customers to switch to other providers without incurring a fee.
The insurer had already pledged to remove its exit charges in July. The firm said this was part its commitment to ensure all customers get "the best possible outcome in retirement".
Last month, the Financial Conduct Authority announced its final rules on capping early exit charges.
The regulator stated that, from 31 March 2017, early exit charges would be capped at 1% for existing pensions and 0% for new contracts.
This was to give people the freedom shop around and choose their retirement products following the government's pension freedom reforms in April 2015.
LV= managing director of retirement solutions John Perks said: "Shopping around at retirement is vital to ensure consumers get a good deal, but excessive exit charges can prevent people from doing so. In July, we committed to removing all pension wrapper exit fees by the end of 2016 and I'm delighted to announce this change has come into effect today."
The chairman suggests there was a lot of rocking going on that night
Alternatives unlikely to perform well
‘Exciting solution for advisers’
Seven ‘off-the-shelf’ options
Analysing ‘noise’ largely pointless