Norwich Union yesterday stopped imposing exit penalties on with-profits pension holders who delay their retirement dates and Friends Provident is considering whether to follow suit, says the Daily Telegraph .
IFAs who advised clients to select early retirement dates when they bought policies in order to avoid heavy commission charges, have in recent months been shocked to discover MVAs would be applied if clients then delayed their retirement. As a result, some of the UK life offices have been reviewing the practice, and Norwich Union has been the first to take action . Standard Life told the Telegraph it will not change its practice at this stage and continue to impose a market value adjuster in cases where pension investors transfer funds to another pension policy rather than buy an annui...
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