Treasury to consult on pensions freedoms: George Osborne announced that Treasury will consult to ensure that people are not charged excessive early exit penalties and are treated fairly when moving their pension to a company that offers them flexible options to access their savings. In particular, the consultation, due to launch next month, will look at:
- options to address any excessive early exit penalties. These include, if there is evidence of such penalties, the option of imposing a legislative cap on them for those aged 55 or over; and
- making the process for transferring pensions from one scheme to another quicker and smoother, to help people make use of the new freedoms.
The Association of British Insurers welcomed the consultation, but denied that the industry was responsible for erecting barriers to early exits. (Source: Treasury to Consult on Pensions Freedoms)