Pension exit fee cap confirmed at 1% by regulator

November 16, 2016 | 6years | NEWS AND INTEREST

Early exit charges for people taking money out of their pension pots will be capped at 1%, the financial regulator has confirmed.

The new rules will affect anyone taking money out of a personal pension from 1 April 2017.

The Financial Conduct Authority (FCA) said providers who already charge less than 1% will not be allowed to raise their fees.

Those taking out new pension contracts will face no early exit charge at all.

Workplace pensions will be subject to the same rules, but these will not come into effect until October 2017, the Department for Work and Pensions (DWP) announced.

Christopher Woolard, executive director of strategy and competition at the FCA, said: "People eligible for the government's pension reforms should feel able to access them as they wish.

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