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Pension Freedoms: 2.2m face charges to access money

More than 2.2m savers will be hit with pension exit fees - four times previous estimates - when they attempt to use the new pension freedoms. Data released by City watchdogs shows that one in 10 savers will be charged for accessing their funds. More than 870K of these savers will face a penalty of £1,000 more for accessing their fund, while 62K savers face extreme charges of 40% or more if they access their retirement pot.

Around 1.5 million of the customers being charged exit fees are aged under 55 and will be accessing their pensions in the coming years, while 670K are over 55 and are already able to dip into their fund as they like. The findings, add further pressure on ministers to ban exit fees are part of an official inquiry into pension freedoms launched this summer. Chancellor George Osborne has pledged to end retirement rip-offs that prevent people withdrawing money for years after they turn 55.

Meanwhile the Government has admitted that people reaching retirement age have not been properly informed how changes to the state pension will affect them. In response Pensions Minister Baroness Altmann announced a new publicity campaign of advertisements and leaflets to inform people within 10 years of state pension age about how the reforms can affect them.


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