The pension industry must develop a “clear, accessible and universally adopted” charging structure by the end of 2012.
In its report on auto-enrolment, published last week, the work and pension select committee calls on the industry to introduce a universal charging structure and set up comparison websites.
Speaking to Money Marketing, committee member and Conservative MP Brandon Lewis says: “Auto-enrolment schemes operate around a more or less standard structure but in pensions there are so many variables that it will be difficult to compare costs. However, that is down to the industry to figure out.”
Bridgewaters Financial Services director Chris Wicks says: “A universal charging structure is a stupid idea, it does not take into account the reality of pensions. How can the industry deliver one charging structure when pensions can be so different?”
The committee is also calling on the Government to monitor providers to ensure there are no hidden charges in auto-enrolment products. It says if hidden charges persist, the Government should place caps on charges.