Consultation to look at pension pot early exit fees

摘要

The government has launched a consultation to explore how to make it cheaper and faster to make cash withdrawals from pension pots. Reforms launched in April mean that pension holders have the freedom to choose how much income they take from their pension from the age of 55, or to take a direct lump sum, 25% of which is generally tax free. The consultation will consider issues including capping early exit penalties charged by pension providers, cutting down long transfer periods for those switching schemes and providing clarity about when pension savers should seek financial advice.