Overwhelmed by all the pension jargon? Fear not, our pension glossary has you covered. All the important terms and acronyms explained right here.
What are Exit Penalties?
If you choose to switch or consolidate your pension, some providers may charge you an exit penalty. These penalties are capped at 1 per cent of the value of your fund for those over 55, but if you wish to switch your pension at an earlier age you may still be charged, depending on your provider. That does not mean that switching is not worth doing – in many cases the benefits can outweigh the charges.