Scottish Widows has removed its early exit charges on all personal pension policies, including workplace pensions.
The move will enable clients to switch products or providers free of charge before the end of their policy.
It follows the announcement of a 1% cap on early exit charges by the Financial Conduct Authority last May to allow people to make better use of pension freedoms.
The cap will affect personal and stakeholder pensions – both individual and workplace – as well as self-invested personal pensions, for those over the age of 55.
Scottish Widows’ blanket ban will take effect before 31 March, when the regulator’s cap comes into force.
The group’s retirement expert David Lascelles said: “It is only fair that people who have saved responsibly and diligently are allowed to access or move their funds without being charged to do so – that’s why we have gone one step further than the requirements and removed them altogether.
“This means our customers can make full use of pension freedoms, if they wish to do so, and not feel restricted in any way.”
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