People who are about to cash in their pension are not being told that they could avoid large charges if they just wait six weeks. Many pension schemes charge their savers a fee if they cash in the pension before it matures – the fee can be as much as 30 per cent. But on March 31 2017, the Government is introducing a cap on those fees, limiting them to a maximum of 1 per cent.
ThisIsMoney reports –
“Firms such as LV= and Old Mutual have scrapped or reduced fees ahead of the cap. But others are holding out to the last minute… Some firms are failing to tell people they could save thousands if they wait. In one case, Aegon reportedly failed to tell a customer they could save around £20,000… The firm says: ‘It’s disappointing that it appears on this occasion details of the exit charges weren’t communicated at the time.’”