Costs and Charges
Steven Blight - Company Nominee
We are extremely pleased that Phoenix have reduced ongoing charges to a maximum of 0.75% charges where customers have no additional guarantees or benefits
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Value for money indicator
Why we gave this score
The level of costs and charges from Phoenix provide good value for money, with the majority of you now paying 0.75% or less per year.
From July 2024, Phoenix has reduced ongoing charges to a maximum of 0.75% per year for customers without additional valuable benefits or guarantees following previous IGC challenges. We are extremely happy with this decision from Phoenix with this resulting in a reduction in charges for over 40,000 customers.
These actions have driven an improved rating for costs and charges when considering the ongoing charges you paid in 2024, and will pay going forward, with us giving a good value for money rating.
- Phoenix has reduced ongoing charges to 0.75% per year for 40,000 customers who don’t have valuable guarantees or additional benefits which provides good value for money.
- Should you pay above 0.75% per year this will either be due to valuable guarantees as part of your policy or due to a specific investment choice in an external fund.
- We regularly monitor transaction costs and are comfortable these remain reasonable.
- Most of you will pay no exit charges.
- For those of you who would pay an exit charge it is limited to 1% of your fund value.
- We monitor other charges you may pay for additional benefits and guarantees.
- We are happy that any other charges you pay are reasonable and offer value for money.
Some additional information
Challenges
In order to improve the value for money that customers receive, we set specific challenges to address areas that could be improved. Below is an update on the challenges we set Phoenix Life for 2024:
Fully Met: Implemented a value adjustment for customers paying above 0.75% per year (with no additional valuable guarantees or benefits or access to lower charging funds) and developed a longer term solution for other options that may be available to improve value for money for customers.
Challenges set for 2025:
- For customers at the start of 2024 paying more than 0.75% per year in annual charges (without additional valuable benefits), continue to progress the move to a more modern product with wider proposition benefits.