{"id":2377,"date":"2016-02-03T19:23:41","date_gmt":"2016-02-03T19:23:41","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/?p=2377"},"modified":"2016-02-03T19:23:41","modified_gmt":"2016-02-03T19:23:41","slug":"early-pension-exit-fees-capped","status":"publish","type":"post","link":"https:\/\/my-brains.co.uk\/jackross\/early-pension-exit-fees-capped\/","title":{"rendered":"Early pension exit fees capped"},"content":{"rendered":"

The Financial Conduct Authority (FCA) will be given the power to cap \u201cexcessive\u201d early exit fees on pension pots.<\/strong><\/p>\n

The new FCA responsibility will be introduced through legislation and the government will be publishing a formal response. The proposals will see the FCA being independently responsible for determining what the level of the cap on early exit fees will be. The FCA is due to launch a consultation on what this should be. Around 700,000 (16%) customers in contract-based schemes could face some form of early exit charge for accessing their pot. Furthermore, a \u201csignificant minority\u201d were potentially looking at charges high enough that could \u201ceffectively put them off accessing their pension flexibly\u201d.<\/p>\n

So far, 400,000 pension pots have been accessed under the new pension freedoms. Further FCA investigation found that of the 670,000 consumers aged 55 or over that have faced an early exit charge:<\/p>\n