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, available on The Pensions Advisory Service website, has been developed to help employers choose a suitable pension scheme for automatic enrolment.
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: “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.”
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.”
Evolve Financial Planning director Jason Witcombe says: “This sounds like a useful tool but employers need to consider overall value, rather than just price, when choosing a pension scheme.”