Independent Financial Life Planners Bishop's Stortford: Pension penalties curbed

Thursday, 2 June 2016

Pension penalties curbed

Enable’s IFA’s in Bishops Stortford are pleased to see that it has recently been revealed that savers who want to tap into their pensions will no longer be hit with enormous penalties, the regulator had revealed fees will be capped at one per cent. Earlier this year Chancellor George Osborne pledged to change the law so savers using new freedoms to access their pension cash early would not be stung by the huge fees that could gobble up to 20 per cent of their nest eggs.

The Chancellor and Prime Minister quickly announced that fees would be curbed, but said that it was not up to government but rather the financial regulator to determine the level of the cap. So Christopher Woolard, director of strategy and competition at the FCA, said: 'Together with the ban on exit fees in future contracts, we are proposing a one per cent cap on exit charges in existing contracts to ensure people can access their pension pots without being deterred by charges.

'This is an important step so people feel able to access their pension savings should they wish to.'

Consumer groups welcomed the news. Alex Neill, Which? Director of Policy and Campaigns, said: 'It's right that the FCA is bringing in this cap on pension exit fees. People shouldn't be unfairly penalised for accessing their money. 'This announcement is a good first step and the regulator must now turn its attention to other charges people face when trying to make the most of the pension freedoms.' If you are looking to make the most of your pension pot Enable’s IFAs in Bishops Stortford might be able to help.

Source: This is Money

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.