The government will closely monitor the developing drawdown market following the introduction of pensions freedom and act to cap charges if necessary, Lord Freud has said.
Speaking in the House of Lords, the minister of state for welfare reform said the government was monitoring the growing drawdown market, which is predicted to increase on a massive scale as people choose to keep their pension pots invested. Freud (pictured) said: "We already have the power to limit or ban decumulation charges and if we see that providers are charging excessive fees, we will not hesitate to act. "We are going to see how the market develops. It has only been going for two months. "If it looks appropriate we will introduce caps.I know that my new noble friend, the Mi...
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