'Dysfunctional' pension charges slash retirement savings

It added the way pension providers, consultants and advisers operate in the pensions market is "dysfunctional" and can lead to severe member detriment. Academics at the Pensions Institute said members of smaller workplace pension schemes were especially at risk of paying high charges, especially if they leave the pension fund. It said: "High charges are disguised by massive complexity, but also by the Financial Services Authority (FSA) projection rates, which are unrealistically optimistic relative to performance post-2000 and are likely to remain so even when revised. "Unless older hig...