OFT to end 'poor value for money' pension charges

Jenna Towler
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Hundreds of thousands of people are saving for retirement into pension schemes which are poor value for money due to high charges and poor governance, an investigation by the Office of Fair Trading has found.

Its report into the complex £275bn defined contribution pension market, which covers about five million people, has found old and high charging contract and bundled trust-based schemes "may not be delivering value for money". It also found smaller trust-based schemes are at risk of delivering poor outcomes for savers due to low trustee engagement and capability. These were also deemed poor value for money. The OFT said it would work with The Pensions Regulator (TPR) on a set of reforms to the industry in light of automatic enrolment which will see millions more peoplepushed into savin...

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