The Government has introduced a range of measures aimed at removing barriers that may stop people from being able to access their pensions.
In January, the Chancellor announced that he would be giving the Financial Conduct Authority (FCA) the duty to cap excessive early exit charges. FCA data shows that around 16% of customers in contract-based schemes who are able to access their pension could face an early exit charge.
Other measures outlined are:
- the introduction of a new requirements for trust-based pensions schemes to regularly report on performance in processing transfers.
- new guidance from The Pensions Regulator to ensure transfers are quick and accurate for scheme trustees.
- Pension Wise will develop new content for customers on the transfer process.
Further research by the FCA found that the average transfer time for a FCA regulated contract-based scheme is 16 days. Data from the The Pension Regulator show that transfers for trust-based schemes typically take around 39 days.
Speaking in January Chancellor George Osbourne said:
"We're determined that people who've done the right thing and saved responsibly are able to access their pensions fairly."
Baroness Ros Altmann, Minister for Pensions said:
"No consumers should have to pay excessive early exit fees, regardless of the type of scheme that they are in."
For more information on Pensions generally or for more specific advice regarding your own pension, give Elpizo Accountancy a call today.