Since 6 April 2015 over half a million people in the UK aged 55 and over have been able to take advantage of the new rules for accessing pension savings. The new rules allow people new ways to access their pension pots by taking lump sum payments. The first 25% is tax-free and the remainder is taxed at the individual's marginal rate.

New figures published by HM Treasury have revealed that since April 60,000 people have taken advantage of the new pension freedoms and more than £1 billion has been withdrawn from pension funds.

However, the Government is concerned that some people are being charged excessive, early-exit penalties. They want all individuals to be able to transfer their pension in a fair manner.

A new consultation will be launched by HM Treasury next month and will look at:

• options to address any excessive early exit penalties. These include, if there is evidence of such penalties, the option of imposing a legislative cap on these charges for those aged 55 or over
• making the process for transferring pensions from one scheme to another quicker and smoother, to help people make use of the new freedoms.

The changes to the pension system have been unprecedented and the Government is keen to ensure that everyone who wants to benefit from the changes is able to do so.