The Government has committed to greater transparency on hidden pension charges in a win for our Hands off my Pension campaign.
We've been campaigning to ensure clear, consistent and regular information is provided to consumers about their pension charges.
Our executive director, Richard Lloyd, said: 'It's good the Government is cracking down on hidden pensions charges because more transparency is urgently needed to help consumers get better value from their pension.'
Pensions minister Steve Webb 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.'
However, this alone will not be enough to end rip-off schemes as people are often automatically enrolled by their employer and are unable to shop around.
We also need to see a cap on charges of 0.5%, to cover all new and existing workplace pension schemes, which could save consumers around £4.8bn just over the next 10 years.
In November 2013, we launched the 'Hands off my pension' campaign. More than 15,000 people supported our campaign and we received 7,000 comments which we presented to pensions minister Steve Webb.
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.