The Association of British Insurers has launched an online tool designed to help employers compare different pension charge levels and analyse the impact fees have on workers’ pension pots.
The tool, which will be available on The Pensions Advisory Service website, has been developed to help employers choose a pension scheme for automatic enrolment which is suitable for their employees.
It allows firms to graphically demonstrate the impact charges have on members’ pension pots in a range of different scenarios.
ABI director of life, savings and protection Steve Gay says: “Employers across the UK are facing important decisions in choosing pension schemes for their workforces.
“Although pension charges have fallen dramatically over the past decade, we need to ensure employers have the most appropriate information on charges readily available in a form that is easy to understand.
“The availability of the pension calculator will help employers to choose pension schemes that provide value for money for their employees, which will in turn raise confidence in pensions and encourage people to save regularly for later life.”
Pensions minister Steve Webb says: “The best way for savers to get good value is for employers to make the right decision on which pension scheme they use.
“People need to feel confident that their workplace pension is right for them, and that their pot will not be whittled away by excessive charges.
“I welcome this innovative calculator and the informed choice it will allow employers to make.”