FCA consultation to cap exit charges for pensions to 1 percent of the fund.
Exit Charges For Pensions Capped From April 2017

Pension changes last year allowed people aged 55 and above holding pensions to be able to use their built-up pension fund for any purpose, rather than being forced to purchase an annuity with a minimum of 75% of the fund.

People have been quick to access funds under the changes and near 400,000 dipped into their pension funds - either to utilise the money or transfer it to a new pension. Unfortunately the pension providers applied early exit charges - in some cases up to 50% but generally around 5 - 15%.

The FCA (Financial Conduct Authority) forecasts that nearly 700,000 people potentially face exit charges with a number paying over £5,000 to access their pension fund. Based upon the findings the FCA wants to cap all exit charges to 1 percent of the fund value.

Once the new proposal come into force next April, new pension contracts being entered into will not be able to impose an exit fee at all.


Have a look at our other Pensions calculators

Pension Calculator

Find Out How Much Your Pension Will Be Worth, or How Much You Need To Invest To Get The Pension ...

More +

Have a look at our other Pensions guides

Why should you get profess ...

Our motto is to help prepare you to get proper financial advice, but why should you get pensions ...

Pensions Guide

Learn about Pensions, the types, the terms, the risks and how to plan for your retirement.

More +

Have a look at our other Pensions news

Pension Advice May Soon Be ...

Government consulting to provide tax free advice for pension planning by creating a new Pensions ...

03 Sep '16

Exit Charges For Pensions ...

FCA consultation to cap exit charges for pensions to 1 percent of the fund.

27 May '16

How will your Pension work ...

New Pension Calculator Aims To Allow Fast Pension Planning Based On Goals Or Current Contributions.

26 Jul '12

More +


By using this site, you agree we can set and use cookies. For more details of these cookies and how to disable them, see our cookie policy.

This site is designed to give you an understanding of financial products out in the wild, preparing you for proper professional advice.

We have provided guides, tools, a selection of deals (lowest rate and/or fees) but expect you to seek full professional advice with a whole of market adviser before making any decision.

Use the information provided at your own risk, we're not providing advice and errors can be made. Calculations made on the site are estimates, therefore in places assumptions or approximations may be used. We cannot accept responsibility nor are liable for any mistakes.

Please read our full disclaimer.