Over fifties are less likely to be affected by exit charges than those below fifty when withdrawing from a pension scheme, The Pensions Advisory Service has found.

Speaking at the Transparency Strategy Summit on Monday 12 September, TPAS chief executive Michelle Cracknell noted that since the introduction of the pension freedoms, which allows members to withdraw their money as and when they want, those below the age of fifty are more likely to change their course of action when faced with exit fees.

Cracknell noted that while both groups express their frustration towards exit charges, the older age group do not tend to change their plans.

When discussing pension charges, Cracknell explained a handful of key themes including, simplicity, reputation and cost charges that the advisory service has concluded from members’ queries.

A prevailing theme was the need for simplicity across the sector and is something that Cracknell said is greatly valued by customers. This is something that can be achieved through extended transparency between members and trustees.

Furthermore, TPAS found that reputation is a key theme that influences pensions customers. “Most people speak to family and friends and not professionals,” Cracknell said.

As a result of this, many may be put off by negative experiences involving hidden charges and could be encouraged to look towards alternative savings methods instead.

The summit posed a number of standpoints on pension charges, operational and infrastructural costs, and an overarching need for greater amounts of clarity for members on this area.

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