Treasury to cap 'prohibitive' pension exit penalties

FCA to enforce level of cap

Jenna Towler
clock • 3 min read

The Treasury will legislate to cap excessive early exit charges levied on savers using pension freedom, it has confirmed.

The Financial Conduct Authority (FCA) will be tasked with implementing the policy. Speaking in the House of Commons, Chancellor George Osborne said: "The pension freedoms we've introduced have been widely welcomed, but we know that nearly 700,000 people who are eligible face some sort of early exit charge. "The government isn't prepared to stand by and see people either ripped off or blocked from accessing their own money by excessive charges." He added: "We've listened to the concerns and the newspaper campaigns that have been run and today we're announcing that we will change the...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

'Real-world consequences of allowing pension tax speculation to run unchecked'

Rachel Vahey
clock 05 October 2026 • 3 min read
Triple lock played 'important role' but it would 'always need to end'

Triple lock played 'important role' but it would 'always need to end'

Pensions industry reacts to triple lock change

Holly Roach
clock 30 September 2026 • 4 min read
Triple lock changes welcome but 'cannot solve' national care problem

Triple lock changes welcome but 'cannot solve' national care problem

‘The sooner the government comes clean on these plans the better’

Sophia Panayi
clock 30 September 2026 • 6 min read