Widowed people and divorcees are being punished by hefty fees, often adding up to hundreds of pounds, when receiving their share of their former spouse’s pension.
These processing fees, charged by firms including A J Bell, Barclays Smart Investor and Interactive Investor, are levied when money is paid out from a self-invested personal pension (Sipp) on death or divorce. In some cases people are charged £500 or more.
Charges are generally calculated on a “time plus cost” basis, meaning the longer it takes for the money to be shared out, the more you pay. This can add extra pain to an already drawn-out process.
Read the full article here: The Telegraph