Currently the drawdown fee is set at £58.20 per annum. The platform said the cut will benefit around 8,000 of its customers currently in drawdown.

The current minimum charge on investments, £8.33 per month for investments below £20,000, will also be scrapped as part of the overhaul.

The changes will come into effect on 1 January 2015, as the group responds to pension changes announced in the latest Budget, set to come into effect next April.

Tom Hawkins, head of financial solutions, said: “By removing our drawdown fee and the current minimum charge on the platform our customers will only pay one fee.”

“Additional layers of charges, such as those for switching, drawdown or exit charges are hazardous for customers as they can never fully predict future behaviour and therefore how much they will pay in the longer term.

“Following the Budget announcements, we believe drawdown charges should become obsolete. People will be given greater freedom as to how they access their pension savings and they will not expect to be charged extra for those freedoms.”