Pension charges are an unknown quantity
Fees and charges are way down the list of priorities for one third of pension plan holders, the latest research from Fidelity International has shown.
In an effort to convince pension holders to review their existing plans, Fidelity has released figures showing that six out of 10 people with pensions don’t know how much they pay in charges. In addition, one-third of pension savers did not even consider charges when they chose their plan. This could mean they are squandering hundreds of pounds every year in unnecessary high charges, according to Fidelity.
Of those who are aware of the charges, 27% of those with stakeholder pensions feel they are set too high and 46% of Self-Invested Personal Pension (SIPP) holders agree.
David Dalton-Brown, head of Fidelity FundsNetwork, an online investment supermarket, said: “Most people would not dream of paying over the odds for their gas bill or their car insurance, yet a pension, as one of the most important pieces of financial planning you will ever do, is often overlooked. It is equally important that savers into personal pensions, including SIPPs, make the most of their savings and ensure that high charges are not eating away at their long term returns.”