Pension Fees Could Cut Savings By Half
People taking out personal pensions are being warned about the "enormous" fees being charged which can result in their savings being halved.
A report by the think tank, the RSA, says customers should receive bank account-style statements to prevent them from facing these hidden costs.
It said inappropriate personal pensions that fail to reveal taxes, stock-lending fees and broking commissions, are being sold to unsuspecting customers.
Pensions funds should learn from countries such as Denmark, where people receive an annual account, presented like a bank statement, which shows their investment savings, the report said.
In some cases an extra 2% annual charge can, over the lifetime of a pension, result in a halving of pension benefit.
The report calls for the introduction of a "statement before purchase" which would show British workers the likely effect that fees will have on their pension outcome.
Even when costs are declared, it is not done in a way in which many pension savers and small employers are likely to understand, the study said.
The Seeing Through The British Pension System report follows a previous RSA study which found that a large proportion of pensions disappear in fees - with charges swallowing up to 40% of the value of the pension over its lifetime.
The report's co-author, David Pitt Watson, said: "For markets to work effectively, consumers need to know what they are buying.
"It is extraordinary that, after so many years, such a system is not in place in this country."
Harinder Mann, who also wrote the report, said the proposals would give Britons greater confidence in the saving system.
what do you think?
Just like banks, utility Co's or any institution that provides an essential service the private pension system has jumped on the band waggon of ripping of the population.These leeches and parsites are treating their customers like animals to be farmed, milking from them by deceit for every last penny they can get their hands on. And just like farm animals when their usefulness is over they re -stock, in their case with honest citizens who just want to provide for their old age. the amount of suffering they cause is of no concern to them. corporate profit must and always will prevail.
What about those of us who are already receiving these pensions, worth much less than they should be? Are we going to be compensated?
Theres enough 'Pie' for everyone in this country the trouble is the super rich want more and more 'Pie'. Until the electorate vote for policies instead of politicians nothing will change, it works in Switzerland, no wars , no Kings, true citizens not subjects. So keep tugging your forelock to your betters, keep voting for the status quo and expect to be 'bled' dry. I might have my own MI5 file if I keep this up!