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.

Hidden 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.”