ABI response to HMT announcement on excessive early exit charge

Yvonne Braun, ABI Director of Long Term Savings Policy, comments:

“We note the announcement by the Chancellor today that he plans to introduce a new duty on the FCA to cap exit charges on pensions. As the FCA acknowledge, more than eight out of ten customers do not have to pay early exit charges to access their pensions. Where they do, most fees are below 5% and were put in place decades before the Freedom & Choice reforms were introduced. We will engage closely with the FCA and Treasury on this issue going forward.”