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Prudential Announce a Reduction to Exit Charges

28 October 2014

Prudential has announced a reduction to exit charges meaning that it only applies if a member retires within three years of making their first contribution, instead of five years which it has been previously.   The level of charge has also reduced as shown below:

  • Withdrawal during year 1  -  3%
  • Withdrawal during year 2  -  2%
  • Withdrawal during year 3  -  1%

No exit charge applies if the term of the AVC exceeds three years.

AVC members who have had an exit charge applied:

Cases which have exited on or after 19 August 2012 will be given an additional payment, which has the effect of reducing their charge to the higher of £400 or the equivalent new charge (3%, 2% or 1%).  In these cases Prudential will make an ex-gratia payment to members.  Where the charge was below £400, no amount will be paid.  Prudential will identify and contact those members affected by this change.