Standardised pension scheme charges needed: Philp

Standardised pension scheme charges needed: Philp

Pension scheme charges should be standardised, according to Darren Philp of The People’s Pension.

The director of policy and market engagement said there was considerable confusion surrounding pension scheme charges.

He said: “At the present time schemes can charge in very different ways which makes comparison difficult and means consumers could be being ripped off.

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“We want to see standardisation of charges so people can truly compare what a pension costs them.

“Providers should compete on what they charge and the service they provide, not how they charge.”

Research by YouGov carried out for The People’s Pension showed more than half of working age people did not know if their current pension provider is charging them to manage their savings or not.

Adviser view

Matthew Harris, director of Fife-based Dalbeath Financial Planning, said: “I do not think the issue is that pension scheme charges are particularly hard to understand, because the documentation we see is made reasonably clear.

“The main issue is that most people do not read past the first page of their annual statement, so the facts about charges and service need to be put in front of their noses more.”