"Excessive" early exit penalties handed to people wishing to withdraw money from their pension pot could be capped.

Chancellor George Osborne said that the Treasury would investigate fees as part of a consultation starting next month. The consultation will look into the speed and ease of transferring to a new provider by those wishing to make use of new pension rules. Changes introduced in April allow those aged 55 and over to withdraw cash from their pension pot. Not all pension companies are allowing partial cash withdrawals from pension savings. This has led some people to consider switching schemes. This process, including the fees and ease of switching, will now face scrutiny. "There are clearly concerns that some companies are not doing their part to make those freedoms available," said Mr Osborne, while standing in for David Cameron at Prime Minister's Questions.....Read more here