Pension exit fees

19 June 2015

George Osborne has said that the Treasury will investigate early exit fees as part of a consultation next month.

In April, changes were introduced to allow those over 55 to withdraw cash from their pension pot, but not all pension providers are allowing partial cash withdrawals. This has led to many people considering switching pension provider.

The consultation is set to look into the speed and ease of transferring to a new provider by those wishing to make use of new pension rules.

In this weeks PMQs, George Osbourne, standing in for David Cameron said; “There are clearly concerns that some companies are not doing their part to make those freedoms available. We are investigating how to remove barriers and we are considering now a cap on charges.”

TUC General Secretary Frances O’Grady said:

“Pensions freedom is looking increasingly like a botched DIY job. The Chancellor is attempting to shave a bit off here and add a bit there just to make his flagship policy work.

“There were plenty of warnings that rushing in these changes was unwise. We need genuine action to remove unfair fees and charges on all pensions. Piecemeal reform would just be letting savers down.”