The firm pledged to make the move back in July and has now confirmed it.

It comes a month after The Financial Conduct Authority announced its final rules on capping early exit charges for consumers eligible to access the government’s pension reforms from age 55.

LV= began removing all pension wrapper exit charges from yesterday to allow customers the freedom to switch to another product or provider if they wish without incurring a charge.

John Perks, managing director of Retirement Solutions at LV=, said: “Shopping around at retirement is vital to ensure consumers get a good deal, but excessive exit charges can prevent people from doing so.

“In July, we committed to removing all pension wrapper exit fees by the end of 2016 and I’m delighted to announce this change has come into effect today. As a modern mutual, we are committed to ensuring our members have access to good value, transparent products that enable them to get the best outcome for their needs in retirement.”

From 31 March 2017, early exit charges will be capped at 1% of the value of existing contract-based personal pensions, including workplace personal pensions.

Early exit charges that are currently set at less than 1% may not be increased. Firms will not be able to apply an early exit charge to personal pension contracts entered into after these rules take effect, the FCA said in November.