View more on these topics

Govt to force pension schemes to publish charges

The Government has announced proposals that will force pension schemes to publish information about the fees they charge their members.

If occupational scheme trustees do not provide the information they could be fined up to £50,000 from April 2018.

Government will also make schemes publish an illustration of the compounding effect of the costs and charges affecting workers’ pension savings.

The announcement follows a DWP pension charges survey that showed 98 per cent of eligible members are at or below the 0.75 per cent charge cap introduced by the Government.

The survey also showed a lack of transparency on some costs in pension schemes so the Government is proposing members receive an annual benefit statement where they can see the costs and charges for their scheme.

Savers will also be able to access information about where their money is invested, which the Department for Work and Pensions says will open up the possibility of people switching to investments that are “better suited” to them.

The DWP says up to 10 million could benefit from the proposals.

Secretary of State for Work and Pensions David Gauke says: “The Government is beginning to address a fundamental imbalance that exists in the pensions industry. For too long savers have been in the dark about where their pension is invested, what they are paying for, and why they are paying it.”

Gauke says: “I want people to have a strong sense of personal ownership over their pension savings. These proposals do just that and will open the industry. By giving people the tools to better understand their options and compare value for money, I believe we are creating a generation of smarter, more informed savers.”

Recommended

Businesswoman

Lloyds to acquire Zurich’s UK workplace business

Lloyds says the deal is a signal of its commitment to the financial planning and retirement sector Lloyds Banking Group is to buy Zurich’s UK workplace pensions and savings business in a deal that is expected to partially complete in the first quarter of next year. The Zurich business has more than £15bn assets under […]

4

Pensions minister: Companies should offer in-house IFA

Employers should follow the lead of a Stoke-on-Trent pottery business that brings an IFA into their business on a regular basis as part of their HR offering, pension and financial inclusion minister Guy Opperman says. Speaking at the Pensions and Lifetime Savings Association conference yesterday, Opperman said Stoke-based Steelite, whose premises he had visited, should […]

2

Advisers oppose pension tax relief cuts being eyed in Budget

Advisers have hit out at the Government’s “obsession” of tinkering with pension tax relief as reports suggest older workers could see their tax relief cut in the upcoming Budget. Chancellor Philip Hammond will make his first Autumn Budget announcement on 22 November. Reports suggest that Hammond is eyeing reforms to promote “intergenerational fairness” in the […]

The times they are a-changin’

After joining Artemis last year, Cormac Weldon launched the Artemis US Equity, US Select and US Smaller Companies funds. A lot has happened in the US economy since — including a period of unexpectedly weak growth in the first quarter of this year. US stocks, however, have produced positive returns and all three funds are comfortably […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment