Fairer deal sought on pension fees
The Liberal Democrat said funds that have “torn the heart” out of retirement pots should consider renegotiating deals to help enhance the “battered reputation” of the industry.
Writing in the Daily Telegraph, Mr Webb warned that the Government was poised to cap high fees to stop thousands of savers from being left stuck with schemes that charge annual levies of up to 4 per cent of the fund’s value every year.
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Hide AdHidden fees can potentially wipe tens of thousands of pounds off a pension and switching schemes can cost a fifth of the value of the fund. “I would like to see the leading companies look again at their ‘back book’ of old pension policies,” Mr Webb wrote in the newspaper.
“They should ask themselves if the battered reputation of their industry would not be greatly enhanced if they were to revisit these schemes and offer scheme members fairer terms.”