Following concerns that some pension companies are not giving their customers full flexibility over how they access their savings, it's good that the Government is looking to strengthen savers' existing rights to transfer their pension to a provider who will.
A consultation to be launched next month will include proposals to put a cap on high exit fees imposed on savers, which is seen as one of the major barriers preventing people from transferring their pension easily between providers.
Which? executive director, Richard Lloyd, said:
'The Government must act to allow people to switch pension providers without being stung by excessive fees if they will not offer the new freedoms.
'The Government must also work with the regulator to ensure products offer value for money, and consider what further reforms are needed to make the market truly work for consumers, including a charge cap on default drawdown products.'
The Government has committed to greater transparency on hidden pension charges in a win for our Hands off my Pension campaign.
We lobbied the Government for a ban on consultancy charges for work place pensions and won.