Surrender charges

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On 31 March 2017, rules were introduced to limit surrender charges on pension products if you’re aged 55 or over and are looking to take or transfer any of your pension funds.

If you took your plan out before 31 March 2017, any existing surrender charges will be capped at 1% of the funds taken or transferred, if you're aged 55 or over.

If you took your plan out on or after 31 March 2017 there won't be any surrender charge applied if you take or transfer any of your pension funds, if you're aged 55 or over.

If you're under age 55 and you choose to take or transfer your benefits, the surrender charge cap won't apply to you unless you're able to take benefits earlier than 55 due to a protected pension age.

However, if you choose to wait until you're age 55 or over to take or transfer your benefits the cap will apply.

You can find this information by logging into our online services(Opens new window)(Opens new window).

You can also contact us or speak to your financial adviser.

If you don't have a financial adviser, visit unbiased(Opens new window)(Opens new window)(Opens new window)(Opens new window) to find one in your area.

Visit the Financial Conduct Authority(Opens new window)(Opens new window)(Opens new window) to read more about the changes.

If you would like guidance to help you understand your options at retirement, Pension Wise is a free and impartial government service. The service is available online, telephone or face-to-face and you can contact them at pensionwise.gov.uk(Opens new window) or on 0800 138 3944.