The Government has committed to greater transparency on hidden pension charges in a win for our Hands off my Pension campaign.
Pensions Minister Steve Webb has launched a consultation on capping pension scheme charges for employees signed up under auto-enrolment. He is considering an outright ban on all charges above 0.75%.
Which? welcomes plans to cap charges on workplace pensions, but the Government must take this opportunity to scrutinise the market to see if the proposed cap could be set any lower. Even a fraction of a per cent can have a significant impact on pension funds, and people need to be confident that their scheme is giving them the best value for money.
We also need to see tight regulation so these charges can’t simply be hidden elsewhere, and the Government should look at what can be done to bring down charges on existing schemes set up before 2001.
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We lobbied the Government for a ban on consultancy charges for work place pensions and won.