There are new rules for pension exit fees to be cappedĀ  at 1%

The new rules will affect anyone taking money out of a personal pension from 1 April 2017.

Those taking out new pension contracts will face no early exit charge at all.

The 1% cap on early exit charges for existing pensions, and the 0% cap for new contracts, will mean that current and future savers will not be deterred by these charges from accessing their pension pots.

Previously some pension providers were charging fees of up to 10%, after the government announced that anyone over the age of 55 could withdraw as much as they wanted from their pensions, subject to income tax.