Exit Penalties to be capped - at last!

Pension early exit fees are to be capped for anyone over age 55, and about time!

Even David Brent is apathetic over pensions but when he is 55 he could benefit!!!

The Government announced in the last few days this great news for pension investors stuck in old style rip-off pensions typically sold in the bad old days - the 80s and 90s, but right up until 2004 in many cases.

Government figures show more than 300,000 people could benefit from this hard fought victory by campaigners including Which?, Henry Tapper, Martin & Paul Lewis (not related) and others. Possibly even this blog might of helped!

Steve Bee, the self-styled Pensions Guru did not help quite so much, and has campaigned more on the side of the IFAs and insurers who benefitted from high charges and overriding commissions, residuals, etc.

It has been proposed the cap will be 1% of fund values on existing pensions and this should take effect from end of March 2017. 

Policies set up after then will not be allowed to charge any early exit fees.

This cap will cover personal pensions and it is proposed a similar cap will apply to occupational pensions too, although most occupational pensions are set up more carefully with advisers, but smaller pension schemes (or most likely Group Personal Pension) set up by financial advisers may have exit penalties.

The final rules are expected later this year.