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.”