Hidden pension charges to be revealed
26 Feb 2014
New plans are being set out by the Government to force pension fund managers to be more open about any hidden costs.
Last year, the Office of Fair Trading (OFT) warned there was ‘insufficient visibility and comparability of charges’. Currently thousands of pounds can be wiped from the value of retirement savings without any notification being given to savers.
A spokesman for the department for work and pensions 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’.
They added: ‘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’.
Investment transaction costs, incurred from buying and selling shares, are often hidden and deducted directly from savers’ funds. Pensions minister Steve Webb, said: ‘For the first time we are shining a light into the murky corners of the pensions industry to make sure savers know what is happening to their money’.
More details on the plans are due to be released soon.