What changes are happening to surrender charges?

Back to results

From 31 March 2017, rules are being introduced to limit surrender charges on pension products. If you’re aged 55 or over and are looking to take or transfer your pension benefits and have a surrender charge, the charge will be capped at 1% of the value of your benefits being taken or transferred.

If you’re aged 55 or over and take or transfer your pension benefits and have a surrender charge that is 1% or less, this won’t be affected by the cap and will remain as is.

If you're under age 55 and you choose to take or transfer your benefits, the surrender charge cap won't apply to you.

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

If you take or transfer your benefits before 31 March 2017, these changes won’t apply to you.

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 Financial Conduct Authority(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 via the internet, telephone or face to face and you can contact them at pensionwise.gov.uk(Opens new window) or on 0800 138 3944.