View more on these topics

Changes to early exit pension charges

In November last year, the FCA announced that from 31 March 2017, early exit pension charges will be capped at 1% for those customers who are eligible to access their retirement savings from age of 55.

The rules also state that for new personal pension plans started after that date, or on new increments into existing personal pension plans after that date, no early exit charges can be applied.

The DWP intend to apply the same early exit charge cap for plans taken out under occupational pension schemes, and is looking at this coming into force in October 2017.

Our approach

For all existing personal pension plans which currently have an early exit charge of more than 1%, this charge will be capped at 1% for all eligible customers, effective from 31 March 2017.

We’ll also be introducing the early exit charge cap for existing eligible plans taken out under occupational pension schemes from 31 March, so ahead of the proposed October deadline.

For customers not yet eligible to access their retirement savings, any early exit charges will apply as normal.

How we’re supporting customers

For customers who get in touch with us before 31 March, we’re letting them know about the changes and if these impact them.  We’re also recommending they contact their financial adviser for further guidance and sending them a leaflet which includes an example of how the new rules could affect the value of their pension fund.

We’ve also published a message on our consumer website to let all customers know about this change and directing them to a financial adviser for more information.

If you have any questions about this, please call us on 0345 60 50 050.


Scheme pays explained

By Fiona Hanrahan, senior product insight and technical support analyst We’ve received lots of queries on scheme pays and when it can be used. This article explains how it works and the conditions which apply. What is ‘scheme pays’? If an individual exceeds the annual allowance (AA) and an AA tax charge is due, they […]

What are the key changes to transform pensions?

By Fiona Tait, pensions specialist In her final article for Royal London, Fiona Tait reviews key changes she believes have transformed, or will transform, pensions. In my 12 years with Royal London I have been paid to review, study and explain the numerous changes to pension legislation which have transformed our industry in that time. This is […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]

DB transfers – one more factor to consider

Jim Grant – Senior Product Insight & Technical Support Analyst We look at how higher DB transfer values could cause a lifetime allowance issue and how that affects the advice process. Advisers are receiving an increasing number of requests from clients looking to transfer their pension from final salary schemes to personal pensions. This is a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm