Pension savers could 'lose thousands' due to lack of transparency over charges

1034     0
New search has revealed many people don
New search has revealed many people don't really know how much it costs to switch funds to a new provider. (Image: PA Archive/PA Images)

Pension savers might lose funds from their retirement pots due to different charges afer transfering monies, warn experts.

New search has revealed many people don't really know how much the charges vary between different pension provider. Of those questioned 72% admitted they didn't know what charges were made.

As some pension pots are worth hundreds of thousands of pounds even a tiny percentage difference can mean the change in charges could run into thousands of pounds. This report was carried out by People's Pension, who said the industry should be more clear about what are the differences in charges and fees.

Mr Patrick Heath-Lay, chief executive officer at People’s Partnership, said: "While there are many factors that can make a pension attractive, the two fundamental aspects are investment returns and charges. If people can't make an informed decision about the value they are being offered by different providers, they risk losing thousands of pounds from their retirement pots. This lack of transparency is an enormous issue that pensions providers have to address."

A survey by People's Partnership, conducted between November and December 2023, found that half of the 1,000 people who had consolidated their defined contribution (DC) pensions without a financial adviser in the past two years said it was easy to find information on fees and charges from both their old and new pension providers.

How to check if you’re owed £6,900 in state pension back-payment in 2023 tdiqriqkuidqzprwHow to check if you’re owed £6,900 in state pension back-payment in 2023

Lawrence Matheson

Financial Conduct Authority, Department for Work and Pensions, Pensions

Read more similar news:

03.01.2023, 15:39 • Money
Golden rule shows how much you should really be saving into your pension
04.01.2023, 10:01 • Money
Martin Lewis warns 7million households are missing out on free cash help
04.01.2023, 16:49 • Money
Millions urged to look out for new letters which could mean £3,500 benefit boost
05.01.2023, 10:36 • Money
Millions urged to do pension check before rules change - or miss out on £5,000
07.01.2023, 00:01 • Money
State pension warning as Brits have 3 months to check & claim £1000s
07.01.2023, 18:51 • Politics
Elderly drivers urged to sue car rental firms who won't give them hire vehicles
07.01.2023, 20:46 • Politics
Mick Lynch warns rail staff could still be on strike this time next year
10.01.2023, 16:56 • Politics
Benefit sanctions will continue under Labour as party 'reforms' Universal Credit
11.01.2023, 17:15 • Politics
Around 100,000 civil servants to strike on same day in major escalation
11.01.2023, 09:21 • Money
Martin Lewis' warning for thousands to act or miss £900 cost of living payment