An investigation by the Telegraph has revealed that the vast majority of pension schemes are failing to offer the freedoms promised by the government.
The investigation found that most of the over 55s were unable to access their pension as easily or as cheaply as intended with many facing charges and blocks on potential withdrawals. The newspaper found that many of the largest pension providers were not allowing their customers to dip into their pension pot as often as they wanted.
Pension Freedoms Restricted
The investigation that involved 18 different firms revealed that savers were prevented from making withdrawals of less than £5,000 and were limited to accessing the account only a few times a year. Many were also denied access to funds worth less than £30,000.
Some of the pension firms were also charging significant amounts for access to pensions with some firms charging up to £240 per withdrawal while others are allowing access for free. The pensions reforms were introduced to try and grant people more freedom with their pension.
Ros Altmann, the pensions minister, said: “Some pension firms are putting barriers in the way of people accessing their own money.
“The patchwork quilt of charges and different levels of services provided by firms is also worrying and something I want to look at with colleagues across the Government urgently.
“Some firms have stepped up to the challenge of the new freedoms and are meeting their customers’ demands, but too many seem to be lagging behind.”
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