Consultation on pension scheme charges
Posted on 03 Apr 2019
Government consultation proposes to cap annual charges that are applied to pension schemes at between 0.75% and 1.0% a year report Harris & Co accountants Northampton as part of their regular monitoring of important developments in the world of business and finance.
Harris & Co accountants Northampton keep abreast of all the major new developments and pioneered the use of a FREE regular weekly e mail update for clients at the birth of the internet, some 12 years ago. Principal of Harris & Co accountants Northampton, Phil Harris, said “This is just something that we thought would help clients get a heads-up on key developments that could affect them. Clients love the regular, short punchy updates. We get a lot of very positive feedback on it.”
While the average charge on new pension schemes is around 0.51% the Office of Fair Trading estimates that there are over 186,000 pension pots with £2.65bn assets that are subject to an annual charge of above 1%.
The government is also consulting on measures to increase transparency in the pensions sector and make it easier for employers to compare pension schemes.
Minister for Pensions Steve Webb said:
‘The government believes that enough is enough on charges. People need to know they are getting value for money when they save into a pension and not being ripped off by excessive charges. We are consulting on a cap on pension charges. A range of options will be on the table including an outright ban on all charges above 0.75% per year.’
With Pensions Auto Enrolment being rolled out to all employers please do get in touch if we can help you to get to grips with the obligations or if you want to sign up for our FREE weekly e-wire on crucial business developments.
