Pension Bill amendment could pave way for drawdown charge cap

The proposed clause published today states that the Secretary of State "may make regulations imposing a cap on the charges that may be imposed on members of flexi-access drawdown funds". The Bill is currently at the committee stage in the House of Lords. Although the clause does not mean that a charge cap will necessarily be imposed, it paves the way for it to be introduced. The government has already introduced a 0.75% charge cap for defined contribution default funds from this April. National Association of Pension Funds head of policy and research Jackie Wells told PA's siste...