Data published by investment adviser Moneyfarm has suggested that 50% of pension savers are unaware they are paying charges on their pension pots.
According to Moneyfarm, costs subtracted from an investment throughout its life ‘play an enormous part in the final retirement pot’. The data showed that pension savers are, on average, paying annual charges of 2.5%. 53% of individuals believe their fees are competitive.
Just 23% have considered shopping around in order to benefit from lower costs.
Commenting on the matter, Carina Chambers, Pensions Technical Expert at Moneyfarm, said: ‘A seemingly small amount in fees can lead to significant shortfalls over the long term.
‘The difference between 2.5% and 1% doesn’t seem much, but when it comes to pensions, we are talking about a large amount of money which is invested over a long period of time. That apparently small percentage difference therefore compounds, so the losses we are talking about can be very significant.’
04/07/2024
View all >
16/12/2025
Most sole traders are not ready for MTD
The majority of sole traders do not have a clear understanding of Making Tax Digital (MTD) for Income Tax, according to research from IPSE, the self-employed association.
READ MORE
Still time to start self assessment returns
Although there are less than two months until the self assessment deadline there is still time to start an accurate return, says HMRC.
Covid fraud cost UK taxpayer £10.9 billion
Taxpayers lost £10.9 billion to fraud and error as the UK government’s pandemic response left the front door open to fraud, according to an independent report.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.