More than 100,000 Legal & General pension savers will see the annual charge on their retirement plans rise from next year unless they move their pension.
L&G has written to 100,000 customers with less than £15,000 in their pot, 84% of whom currently make no contributions to their plan. The increase affects those in its old-style personal pensions, where Legal & General paid higher commission payments to advisers who recommended them. Legal & General currently charges a maximum 1% a year on their plans, but from July 31 next year this cap is being removed. The cap was introduced ten years ago to ensure existing customers would not pay more than on a stakeholder pension. But from next year these customers will pay the charges list...
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