Personal Pension  

Phoenix Life comes under fire for pension exit charges

John Reeve, senior consultant at Premier Pensions Management, said it is important to distinguish between penalties and adjustments for early payment.

“The latter are totally reasonable and it would be inappropriate to allow a member to access the same pension from 60 as they were entitled to from 65. Everyone would access the pension as early as possible if this were allowed.”

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A Department for Work and Pensions spokesperson said: “We are clear that all consumers, regardless of the type of scheme they are in, should not be penalised for accessing the pension freedoms due to excessive charges.”

“We are currently working closely with the The Pension’s Regulator and FCA to introduce a cap on early exit fees.”

This article has been amended since original publication to remove inaccurate content that prefaced a reported comment from Phoenix Life.