The government has raised concerns about the costs associated with pension saving and has announced it will take action to clamp down on excessive charges on occupational pension schemes next year, when a charge cap will be imposed.
But advisers reviewing pension pots today should always contemplate whether a client could be better off switching to a scheme with lesser charges.
This guide will explain the current range of costs associated with retirement savings, what the government thinks about pension charges, what changes could happen, and how to calculate if your client could be better off switching schemes.
Contributors to this guide were Steve Webb, pensions minister; Andrew Tully, pensions technical director of MGM Advantage; Mark Fawcett, chief investment officer of Nest; Morten Nilsson, chief executive of Now Pensions; Saq Hussain, head of PricewaterhouseCoopers defined contribution consulting team in the north; Tom McPhail, head of pensions research of Bristol-based Hargreaves Lansdown; and Ronnie Morgan, strategic market insight manager of Scottish Life.
This guide is sponsored by Aviva. All editorial is independent.