LV= has reduced charges on its self-invested personal pensions (SIPPs) worth between £350,000 and £1m from 35 to 20 basis points (bps), a decrease of more than 40%.
Charges on the other SIPP pension bands remain unchanged. The first £75,000 will continue to be charged 55bps, those with between £75,000 and £350,000 will pay 35bps. Customers with more than £1m pay 10bps.
The changes, which are the result of a regular review of the company's pricing structure, came into effect on Monday.
LV= head of distribution for retirement Steve Lewis said: "We believe this reduction makes us a very attractive proposition to customers with pension pots of around half a million."
Lewis explained that the company was keen to attract more business in this middle band and that he expected the retirement division, which saw growth of 15% last year, to grow between 10% and 20% in 2013.
Lewis added that he thought increased disclosure of charges in the SIPP market, better disclosure of adviser charges and an ongoing difficult market would mean products would be more price sensitive in 2013 than they had previously been.
The announcement comes alongside the company's launch of a microsite called the Retirement Centre.
The centre brings together a series of tools for retirement advisers - these include GAD calculators, investment risk profiling tools and drawdown calculators.
LV= will also launch a pre-tax year-end campaign that will see it host 30 seminars between February and March this year that will provide advisers with technical information on pension rules.
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