The government must impose stakeholder-style caps on charges for auto-enrolment pensions or risk complaints over mis-selling, according to a new report.
Pension schemes chosen for auto-enrolment should have annual management charges (AMCs) of no more than 1.5% per annum for the first ten years and 1% thereafter, the Workplace Retirement Income Commission (WRIC) said. WRIC, led by former Treasury Select Committee chair Lord McFall, also claimed charging structures on pension schemes are unreasonably high and "too opaque", rendering saving ineffective. "Too many people are stuck in a complex, costly and inefficient system that relegates the consumer's interest to second place," said McFall, pictured. "People need to get more bang f...
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