Many people are not getting value for money from the significant charges they are paying financial advisers after they have moved out of a defined benefit (DB) pension arrangement, XPS Pensions Group says.
The firm's latest member outcomes survey - published today (8 December) - analyses transferring DB pension scheme members and various patterns in how and why the transfers occur. The average total charge paid by a scheme member after transferring has fallen from around 1.9% per annum to 1.7% per annum, XPS found. On average, this means a savers' fund will last around 12 months longer than previously expected. Central within the average annual management charges a saver will pay is ongoing financial advice charges, which XPS has raised a specific issue. Although average fees paid by...
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