Private pensions in Britain pay out on average half as much retirement income as equivalent schemes in Europe, the report says, with hidden costs blighting the retirement plans of millions.
The report, by David Pitt-Watson, one of the country's leading pension fund managers, and a team from the Royal Society for the Encouragement of Arts, Manufactures and Commerce, warns the Government that the system is in need of urgent reform to bring these costs down.
Earlier this year, The Daily Telegraph disclosed that a range of little-known fees and levies typically wiped more than £100,000 off the value of a middle-class worker's private pension.
Mr Pitt-Watson, the boss of Hermes, which manages the BT pension scheme, has written to Steve Webb, the Pensions Minister, to set out his concerns.
His three-year study highlights how British savers suffer in comparison with their European counterparts because of the fees charged by pension funds.
While the annual levy can appear small, its effect after decades of saving is substantial, the report warns. This is because the fee is calculated annually as a percentage of the total amount in the pension fund. Each year, therefore, the amount levied increases.
Read Full Article
10 Ways We're Being Fleeced By Banks
This article may be re-posted in full with attribution.
BE THE CHANGE! PLEASE SHARE THIS USING THE TOOLS BELOW
If you enjoy our work, please donate to keep our website going.