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.’
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