View more on these topics

Advisers attack ‘unfair’ exemption for individual personal pension exit charges

Pensions-savings-retirement-piggy bank

Advisers are hitting out at pension firms’ decision to scrap or cap exit fees for workplace pensions but not individuals.

Last month Money Marketing revealed Standard Life and Prudential’s plans to cap exit fees at 5 per cent.

Other providers also announced fees were to be limited or scrapped entirely.

However, while some firms – including Standard Life – took action for both workplace and individual pension customers, others only acted on corporate schemes.

Scottish Widows and Prudential say they will be looking at individuals’ policies at a later date, Aegon plans to upgrade “the majority” of policies over the next year and Legal & General has no plans to scrap exit penalties for any customers.

Fairey Associates managing director Ed Fairey says: “This is unfair and counter intuitive because generally the corporate is seen to be more protective than the individual.

“Individuals are softer targets and more easily preyed upon. Providers are not undertaking this of their own volition and they are going for the wrong set of pensioners first.”

Syndaxi Financial Planning managing director Rob Reid says: “The FCA and its predecessors referred to the importance of a firm’s culture. The DWP has dragged providers into the removal of exit charges but to ignore individual plans is simply unacceptable when clients did not get clear disclosure at inception as it was not then a requirement.

“To ask them to accept something they never signed up to puts the providers in the same place as the banks were, and still are, with PPI.”



Claire Trott: A Budget boost for Sipps and SSASs

As a result of the continued stockmarket volatility, savvy investors have spent the past few months looking for stable assets to invest in for the long term. Although it is true stockmarkets can be stable over the long term and looking at short-term volatility is not the way to think when investing for retirement, there is no doubt […]

How QE is distorting the gilt market

By Mike Riddell The moves in gilts in August were truly exceptional. Volatility in the gilt market (based off 10-year gilt futures) has soared to close to the highest levels seen this millennium, on a par with the eurozone debt crisis of 2011/12 and behind only the global financial crisis of 2008/09. The first distortion […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment