You are here: Home - Retirement -

Govt to force full disclosure on pension charges

Written by:
Pension fund managers will be forced to fully disclose details of hidden costs associated with their products under new government plans.

Ministers have announced that fund managers of defined contribution workplace pension schemes will be made to disclose their full costs to the public.

The move comes after the Office of Fair Trading investigated the market and concluded there was “insufficient visibility and comparability of charges” to ensure proper competition.

A Department for Work and Pensions spokesman said: “We’re taking action to ensure consumers have access to good quality pension schemes so they have the confidence to plan for their futures.

“A lack of transparency around the true cost of schemes can prevent savers from having value for money. We will outline our proposals to tackle this issue shortly.”

The Times said the announcement had been brought forward to avoid a “damaging Lords revolt” spearheaded by former Chancellor Lord Lawson.

Pensions minister Steve Webb is already committed to tackling pension scheme charges and the Department for Work and Pensions is currently consulting on implementing a cap. However, the plans were recently delayed by 12 months after questions over the consultation process.

Pension charges can significantly eat into savings over time. The government said someone who saves £100 a month over a typical working life of 46 years can lose about £170,000 from their pot through a 1% charge and move than £230,000 via a 1.5% charge, according to the Telegraph.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

The mistake that could see your broadband bill soar by 89%

UK households are paying hundreds of pounds more than necessary a year for being loyal to their broadband supp...
The mistake that could see your broadband bill soar by 89%

PPI rule tweak opens door for thousands more compensation claims

Thousands of people who’ve had a PPI complaint rejected or thought they weren’t eligible for compensation coul...
PPI rule tweak opens door for thousands more compensation claims

How married couples can claw back £1,000 from the tax man

From the new tax year, eligible married couples will be able to claim a £250 tax break. But as claims can be b...
How married couples can claw back £1,000 from the tax man

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
UK leads the way as global dividends top $1trn for first time

Three of the top ten dividend payers globally in 2013 were British companies, while financials accounted for the greatest proportion...