DWP plans to cap early-exit charges for occupational pensions

Follows FCA announcement on personal pensions

clock • 2 min read

The Department for Work & Pensions (DWP) is planning to cap early exit charges for occupational pensions to ensure people over the age of 55 are not "unfairly penalised" for accessing their savings ahead of their pension age.

The DWP said people currently face average early exit charges of around 5% of their pension pot for cashing in their savings but the cap would be set at 1% for existing occupational pensions and 0%...

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