All exit charges will be removed before the charge cap deadline of 31st March, when early exit charges will be capped at 1% of the value of a member’s pot.
Recent Hargreaves Lansdown research estimated that reducing the exit penalty cap to 0% would save investors a total of £50 million.
David Lascelles, retirement expert at Scottish Widows, said: “It’s only fair that people who have saved responsibly and diligently are allowed to access or move their funds without being charged to do so; that’s why we’ve gone one step further than the requirements and removed them altogether. This means our customers can make full use of pension freedoms, if they wish to do so, and not feel restricted in any way.”
