DWP reveals pension scheme charges above ABI estimate

clock

Average pension scheme charges are running above the 0.52% level estimated as normal by the Association of British Insurers (ABI), according to official government figures.

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...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Pensions

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

Transfer delays highlight need for ten-day Pension Switch Guarantee

Sahar Nazir
clock 29 April 2025 • 2 min read
Sipps: How clients can avoid common retirement planning mistakes

Sipps: How clients can avoid common retirement planning mistakes

'Retirement planning stands as a cornerstone of long-term financial well-being'

James Floyd
clock 28 April 2025 • 4 min read
Origo completes pensions dashboard connection

Origo completes pensions dashboard connection

Completed connection ahead of this week’s first deadline

Holly Roach
clock 28 April 2025 • 2 min read