Cap on pension exit fees ‘good news’ for consumers, says Citizens Advice
Citizens Advice has today said a limit on excessive pension exit fees is a step towards making sure all consumers can make the most of pension freedoms.
The national charity was responding to the Government’s announcement that the Financial Conduct Authority will cap pension exit charges.
Gillian Guy, chief executive of Citizens Advice said:
“Excessive exit charges can stand in the way of people making the most of pension freedoms. It is good news for consumers that the Chancellor is bringing down this barrier with a cap on fees.
“Many people find making decisions around their retirement finances difficult and the prospect of a sky-high exit charge could put them off making the choice which is best for them. Citizens Advice found that more than two million consumers could face a pension exit fee of over £50, including almost 40,000 people who could be hit with a charge of more than £5,000.
“A limit on early exit charges is a step towards making sure all consumers are free to make the best pension choices for them. We would encourage the Financial Conduct Authority to set the cap at no more than £50, which is enough to cover the administrative costs for providers.”
Notes to editors
- The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.