Mr McLean added that everyone wants scheme members to get the best value possible from their pension savings, but until that can be achieved voluntarily it is highly likely that the government will seriously consider a cap on such charges for those aged 55 or above.
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It will also look at how greater clarity can be provided around the circumstances in which someone should seek financial advice, and investigate how the process of transferring between pension schemes can be improved.
Even with the introduction of the new pension freedoms, a few providers are making it very hard, or even impossible, for consumers to withdraw their pension.
Our pension reforms were the biggest in a generation and they offer people much greater choice on how to use their hard-earned savings, Cameron said.
In a free market providers should have the right to decide which options and flexibilities to include in their products, but in the interests of treating customers fairly they shouldn’t then impose high penalties if their customers decide to move elsewhere.
This would effectively discourage people from taking advantage of the ability to access their savings any time after turning 55 and therefore go against the spirit of the new freedoms, the government says.
Yesterday, the Treasury launched an immediate consultation to look at whether exit charges could be cut or capped for those looking to access their pensions early, and to find out “how to remove other barriers that may be stopping people enjoying the benefits of increased flexibility over their pension pot”.
A government spokeswoman told the Telegraph: ‘It is not on that some people are missing out on that freedom because of expensive fees and other barriers that are blocking them from accessing their own money. The online survey will run alongside the consultation for 12 weeks and will form part of the government’s response.
“Our message is clear: the industry must sort this out or we will take action to guarantee people that freedom”.
“Providers will engage constructively with this consultation so all the relevant facts and issues can be fully understood”.
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2015 has been the year of “Pension Freedom” and since the Chancellor relaxed the rules allowing people to get wider access to their pension funds (after retirement age of course), it has proven decidedly popular with the populace.
