Pensions minister Steve Webb has announced a 0.75% cap on pension charges to come into effect from April 2015. The minister described the move as a 'full frontal assault' on the pensions market.
Which? executive director, Richard Lloyd, has welcomed the news saying:
'The 0.75 % cap on pension charges is welcome news for the millions of consumers currently paying into rip-off pension schemes who will now be thousands of pounds better off in their retirement.'
While we're pleased that the Government intends to do more to bear down on other costs in the coming years, we want the cap level kept under review to see if it can be lower in future to help savers get the best value out of their hard earned money.
More than 15,000 people signed their name in support of our pension campaign and 7,000 shared their views.
The Government has committed to greater transparency on hidden pension charges in a win for our Hands off my Pension campaign.
We lobbied the Government for a ban on consultancy charges for work place pensions and won.