Pension charges: Value is remembered long after price is forgotten

'Value is remembered long after price is forgotten'

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As the FCA and government go to war against 'rip-off pension charges', Tony Parker warns 'cost' and 'value' should not be misunderstood...

The media seems awash with concerns about pension plan costs, with quotes from the Financial Conduct Authority and MPs variously describing these as excessive and a "rip-off", but without any specific clarification as to how their concerns are measured. Of course, costs should be transparent and clients should always know these upfront, along with the suitability of the product that's being charged for. But regrettably the meaning of cost and value can become muddled although they are very different measures. ‘Cost' equates to the reduction in growth, while ‘value' equates to the o...

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