Life events, The Oscars and Pensions
This week the Sunday papers were full of analysis for the films that are vying for the top Oscar accolade, Best Film 2016. This year, similar to many of the past winners, the films reflect on the lessons learned from life events.
The Best film Oscar 2010 went to the British film, The King’s Speech, the story of King George VI lifelong struggle to overcome his speech impediment. It was only when he met Lionel Logue, a speech therapist, that through a variety of techniques and much hard work, he make his impediment a minor problem.
Just like The King's Speech, there is an impediment that people experience when thinking about consolidating their private pensions in the form of exit charges. These are charges not a penalty because the charge is effectively to cover expenses that have already been incurred and are being collected throughout the duration of the contract. If you stop the contract early, these charges are collected in the exit charge. We explain more in our Spotlight, which you can read here.
A number of pension providers have announced that they will not be levying exit charges or applying the cap that is being introduced in April 2017.
So, will people take advantage of the potential reduction in charges if they transfer their money to a new contract where their provider has stopped applying exit charges?
The parallel with The King’s Speech is that King George only addressed his speech impediment because of the life event of becoming King (a big life event!) and because his advisers saying that he needed to be a better orator to lead the country during the turmoil time that culminated in WW2. Will people where there is no “life event” be minded to review their pension?
If you have a question about exit charges or your pension more generally, you can contact our team on 0300 123 1047 (Monday - Friday 9-5)