UK. Thousands of savers to unlock smallest pensions without paying fees
Thousands of pensioners with the smallest pots will no longer have to pay for advice to transfer out of their scheme, the Government has announced.
New rules which will be laid out in Parliament today will exempt thousands of people from rip-off advice fees which can reach more than £1,000.
Savers with “guaranteed annuity rate” pensions worth less than £30,000 will be given a simple valuation of their pension and will be able to transfer out without receiving advice.
Around 1.5m savers have the “guaranteed annuity rates” in their pensions, which normally means they receive a much higher amount each year than they would with annuities calculated based on current rates.
Those with more than £30,000 in one of these pensions must receive advice if they want to use pension freedoms to unlock their cash.
But a lack of information from providers meant many of those with smaller pots were also being forced to take advice to find out what their pensions could be worth.
The new rules mean all holders will receive a document setting out one figure for the cash value of their pension, as well as information about the benefits they would be giving up by transferring out.
Read complete news here: Telegraph
