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Zurich targets retirement wealth with platform price cut

Swindon, December 13, 2017

·        Firm reduces platform fee by more than half for assets above £500,000 
·        New and existing consumers with more than £300,000 will benefit from lower fees
·        Price reduction is aimed at driving greater value for consumers at or nearing retirement

Leading platform provider Zurich has announced it is cutting its charges for consumers with larger portfolios.

Currently, assets within an investor’s portfolio above £1m are charged at 0.22%.  But Zurich is cutting the AuA threshold for its highest tier from £1m to £500,000 and more than halving the charge for this tier from 0.22% to 0.10%.

Zurich is also reducing its charge for assets between £250,000 and the new £500,000 threshold for its highest tier.  Investors will pay a lower charge of 0.25%, instead of 0.27%.

The new pricing, taking effect from 1 January 2018, means that clients holding more than £300,000 on the platform will see the cost of investing fall.

Alistair Wilson, Zurich’s Head of Retail Platform Strategy, said:  “We are using our growing scale to cut prices for customers and ensure our platform remains sustainable and competitive for the long-term.  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.  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.

“Generating income in retirement is already a key focus for consumers with assets on our platform.  We have a very strong retirement proposition and this new pricing structure is firmly aligned to this.  Our new lower charges, combined with our market-leading retirement functionality, will ensure we are well-placed to support customers in and nearing retirement.”

Wilson added:  “We operate a simple, transparent and unbundled pricing structure that is consistent across all product wrappers.   The change will apply to all new and existing customers, meaning prices will either fall or remain the same. Customers who have accumulated assets through family linking will also benefit from lower costs.”
Old tiers (£) Old % New tiers (£) New %
0k-100k 0.35 0k-100k 0.35
100k-250k 0.30 100k-250k 0.30
250k-1m 0.27 250k-500k 0.25
1m+ 0.22 500k+ 0.10
All other costs and charges will remain the same.
Ends