With consumers growing increasingly at ease with the thought of remortgaging or changing bank accounts, it may only be a matter of time until the idea of "re-pensioning" becomes popular, says Legal & General.
And with increasing focus on charges being applied by providers it is likely that consumers and their advisers will increasingly look to the potentially massive increases in pension income made possible by switching to better rates.
"The value of someone’s existing pension fund(s) could be as much as the value of their house or more,” says Andy Agar, L&G head of retirement product development.
”Yet, while we are aware of the extra money which can be saved by switching mortgage providers to one with a lower interest rate, we are less likely to apply the same logic to our pension fund.”
However, L&G is also keen to stress the idea a single flat rate for charges, along the lines of a 1% charge, is not the only solution.
Tiered charges can also produce significantly improved outcomes in the form of improved pension pots over time, resulting in better income in retirement, the provider adds.IFAonline
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