Well...

It depends on the reason for the exit penalty. If it's because you are invested in a with profits fund then you are being hit with a Market value reduction. If that's the case enquire about an mvr free period (usually 10 years after inception). If it's simply exit penalties, it seems excessive after such a period.

The provider are entitled to levy penalties bases upon the terms of their contract no matter how much if a rip off it seems.

With pension transfers, what we usually do is carry out a comparison analysis and compare long tern returns based upon existing charges over penalties and new charges. There is also a degree of consideration as to whether the existing plan can ever provide a decent return.

First thing to do is establish the reason for the charge and go from there.

I'm a registered diploma qualified ifa by the way so i do know of what I speak.

Posted By: Newcastle Canary, May 19, 14:55:01