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Zurich cuts platform charges in bid to win over baby boomers

Zurich cuts platform charges in bid to win over baby boomers

Zurich has cut charges on its platform as it looks to attract retiring baby boomers with large pension savings. 

From the start of next year clients will be charged 0.1% on assets they hold on the platform above £500,000. 

This marks a significant change from the current structure, which charges 0.27% for assets between £250,000 and £1 million, and 0.22% for assets above £1 million. 

Zurich's head of retail platform strategy Alistair Wilson (pictured) said the changes were designed to attract 'affluent baby boomers' as they approach retirement. 

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

'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.'

The full new tiered charging structure will see investors charged as follows:

  • First £100,000 - 0.35%
  • £100,000 - £250,000 - 0.3%
  • £250,000 - £500,000 - 0.25%
  • £500,000 and higher - 0.1%

Zurich follows Transact in cutting its platform charges. Aegon has also recently indicated it may rethink their charges following the acquisition of Cofunds last year. 

These cuts come at a time when the Financial Conduct Authority is looking into the platform market. One of its key questions is whether the market delivers value for money for clients. 

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