Well they were talking about it, and now they have actually done it.
From 31st March 2017, early exit charges on existing pensions for those wanting to access their benefits from the age of 55 will be capped at 1% of the value of the policy. That doesn’t mean pensions with early exit charges of less than 1% will be increasing their fees, we hope! Early exit penalties for new pensions, i.e. those set up after the new flexible pension rules came into force in 2015, will have their fees capped at 0% – even better!
The intention of the cap is to give those aged 55 or over more choice and flexibility in accessing their pensions, and to enable those who perhaps felt unable to access their benefits to now do so. Whilst the hope is that this does not encourage everyone to run out and withdraw their entire pension, it provides people with the freedom they deserve to make flexible investment choices.