Now Pensions has launched an auto-enrolment (AE) cost comparison index to illustrate the long-term implications of fees charged by pension providers.
The master trust said that while the recent increase in total AE minimum contributions in April - from 5% to 8% - this means long-term charges levied by providers could potentially erode savers' retirement pots. Now Pensions' index revealed workers earning £28,000 and paying a monthly minimum contribution could be hit with fees of up to £7,000 within two decades. It further showed that those making a one-off transfer of £28,000 in from another fund could face up to £16,000 of charges. Members of defined contribution (DC) schemes are usually charged an annual management charge (AMC) an...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
