How pension fees could reduce your savings pot by hundreds of thousands of pounds – and how to avoid them
HEFTY pension charges are eroding the value of retirement pots and could end up costing savers hundreds of thousands of pounds.
MPs have criticised workplace pension providers for hidden charges and a lack of transparency, which is pushing up the amount people pay in fees.
In some cases, there are fears that smaller pension pots could be completely eroded by flat-rate costs.
What's the problem with pension charges?
Workplace pensions have their charges capped at 0.75 per cent a year, but loopholes mean that some companies charge significantly more than that in hidden charges and transaction fees.
On top of this, even a small increase in charges can make a huge difference to a pension pot over time.
There are two main issues.
Millions of people are heading for a retirement shock as they aren’t saving enough.
End of pensions mis-selling? Advisers are to be banned from charging more for advice when transferring savings.
You can see what you might look like in the future — now start planning for it with a pension.
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