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<p>The Government continues to work closely with the FCA to ensure there is a competitive,
innovative retirement income market and that customers are treated fairly and benefit
from appropriate protections.</p><p> </p><p>After the pension freedoms were introduced
in April 2015, some consumers were facing early exit charges of 5% or more of the
fund value. Consequently, the Government legislated for the FCA to introduce a cap
on early exit charges, which came into force from 31 March 2017. The Government estimated
that the 1% cap introduced by the FCA would lead to savings for consumers of £42.7m
between 2017 and 2020.</p><p> </p><p>The Government has no plans to undertake a review
of the operation of the early exit charge cap at this time.</p>
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