Pension pots 'being ravaged by hidden fees'

Simon Read
Tuesday 17 July 2012 21:27 BST
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Hidden charges are ravaging people's pension pots while finance firms are misleading savers about the effect of fees, a leading think-tank warns today.

The RSA warns that an extra 2 per cent annual charge can result in a halving of pension benefit. After a year-long investigation into the pensions industry, the RSA said 21 out of 23 providers denied there were additional charges. But its investigation uncovered such extras as audit and custodial costs, and other hidden charges including taxes, stock lending fees and broking commissions.

The authors have called on the Government to force firms to provide a clear statement to pension holders, as happens in other European countries such as Denmark.

David Pitt Watson, co-author of the report, said: "It is vital people have access to straightforward, accurate information. It is extraordinary that, after so many years, such a system is not in place in this country."

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