Clampdown on rip-off pension exit fees sees ban on new plans from April and a 1% cap set for older pots
Exit fees will be banned outright on new pensions and capped at 1 per cent for older pots from next April, regulators have confirmed.
The crackdown on rip-off penalties follows an outcry from savers aged over 55, who faced shelling out thousands of pounds to access or move their money using pension freedoms introduced in April 2015.
Exit fees were routinely written into the contracts of pensions sold in the 1970s and 1980s. They force savers to pay a percentage of their total pension pot if they access their savings before a set age, usually 65 or 70.
Many of the schemes affected are... read more