Plans to introduce a code of conduct forcing pension fund management fees to be disclosed to savers in a simple "pounds and pence" format may actually end up costing lower-paid members more, industry figures have warned.
The National Association of Pension Funds' (NAPF) plans for more transparent charging could mean wealthier members of defined contribution (DC) schemes will no longer subsidise those with smaller pots, they said. DC Investment Forum chairman Stephen Bowles said: “If you went to a monetary charge then those bigger pot values would be paying less and the smaller pot values would have to pay more to balance that out. “We are some way off from having the administrative functionality to be able to deploy that but it is an administrative nightmare to move to monetary charging.” Currentl...
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