DWP reveals pension scheme charges above ABI estimate

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...