DWP reveals pension scheme charges above ABI estimate

clock

Average pension scheme charges are running above the 0.52% level estimated as normal by the Association of British Insurers (ABI), according to official government figures.

The average annual management charge is 0.71% and 0.84% for defined contribution (DC) trust-based and contract-based schemes respectively, according to Department for Work and Pensions (DWP) research. Results also revealed annual management charges (AMCs) were higher where a commission-based adviser was used and that the size of the scheme was the greatest determinant of the AMC (apart from scheme type). The difference in AMCs between fee- and commission-based advice was greatest in trust schemes, where the difference was almost double - 0.57% compared to 0.97%. The difference in c...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Royal London named most recommended personal pension provider

Royal London named most recommended personal pension provider

Aviva leads in SIPP market, Defaqto finds

Isabel Baxter
clock 18 September 2025 • 4 min read
Pensions industry must unite on small pension pot consolidation model

Pensions industry must unite on small pension pot consolidation model

Uniting behind one industry-led model would mean widescale consolidation by 2023

Martin Richmond
clock 16 September 2025 • 3 min read
Pension withdrawals surge 36% as FCA reports record £70.9bn accessed in 2024/25

Pension withdrawals surge 36% as FCA reports record £70.9bn accessed in 2024/25

Nearly a million pension plans were accessed for the first time during the year

Sahar Nazir
clock 16 September 2025 • 2 min read