You may be aware that on the 6th April the government introduced new reforms to provide over 55s with more freedom when withdrawing cash from their pensions.
Following the reforms, 60,000 savers have taken advantage, cashing in £1 billion in total, which is equal to £100 million a week. However, in spite of the high demand, there are still concerns that some pension providers are not doing their part to make the new freedoms accessible.
There is currently a cap on the charges that can be issued by providers when savers pay into their pensions, but not when savers take their money out. With this in mind, the Chancellor has recently announced plans for the Financial Conduct Authority to investigate how to remove the current barriers and look at introducing a cap on charges.
They will also consider how to make the process for transferring pensions from one scheme to another smoother in order to help people take full advantage of the reforms.