View more on these topics

Majority unaware of pension charges


More than half of working age people have no idea whether or not they are being charged by their pension provider, new research suggests.

A YouGov poll of 1,256 working adults aged 65 and under, commissioned by automatic enrolment provider The People’s Pension, found 51 per cent do not know if their existing provider levies any charges for managing their pension pot.

Lack of awareness is highest among women, with 63 per cent unaware of whether they were being charged.

Just over a fifth of respondents (21 per cent) knew they were being charged but didn’t know how much, with only 11 per cent able to say how much they were being charged.

The People’s Pension director of policy and market engagement Darren Philp says the research demonstrates “a worrying lack of awareness about pension scheme charges”.

He adds: “At the present time schemes can charge in very different ways which makes comparison difficult and means consumers could be being ripped off.

“We want to see standardisation of charges so people can truly compare what a pension costs them. Providers should compete on what they charge and the service they provide, not how they charge. The current system does not serve consumers well.”



Warning over death benefit beneficiary trap

Advisers must take action to ensure the beneficiaries of deceased clients are not locked out of the pension freedoms, experts warn. Money Marketing previously revealed how some of the largest pension providers do not allow beneficiaries to access savings passed on to them using flexi-access drawdown. Some older contracts only allow beneficiaries to take pensions […]


Osborne’s smokescreen consultation on pension tax relief

When is a consultation not a consultation? When the Treasury published its paper on tax relief reform, the answer from the pensions industry seemed to be ‘when George Osborne launches one’. Providers across the land groaned as one when the Chancellor announced in the summer Budget he was “open to further radical change – pensions […]


Friends Life and Heineken agree £2.4bn longevity swap

Friends Life has signed a deal with brewing giant Heineken that insures £2.4bn of longevity risk held by one of its pension schemes. The contract, which covers around 19,000 pensioners of the Scottish & Newcastle defined benefit scheme, protects the firm against members living longer than expected. The majority of UK DB schemes have a […]


MetLife launches ‘lower cost’ guaranteed drawdown product

MetLife has launched a new lower cost guaranteed drawdown product that it claims is the first genuine innovation since the pension freedoms were introduced in April. Money Marketing first revealed the insurer’s product development plans in May. The new Retirement Portfolio product allows investors to lock in investment gains on a daily basis. Investors can […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. The very fact that 51% of those questioned don’t even know if their existing provider levies any charges for managing their pension plan surely tells us a great deal. Do these people really think that the companies administering them and managing the funds within them are charitably funded institutions, levying no charges at all on plan holders?

    If so, then George Osborne’s blithe assumption that everyone and anyone can be trusted to act responsibly when given the freedom to cash in their pension plan is about 500 miles wide of the mark. Then again, maybe the new unfettered access provisions really are just a cynical manoeuvre to encourage people to act in (quite possibly un-advised) haste and pay huge amounts of tax to HMRC to help pay down the deficit.

  2. Problem is that cheapest is not the best.

    Cheapest could also mean poor performing.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm