HUNDREDS of thousands will see their retirement savings boosted by tough curbs on pension fees.
Ministers will today unveil plans to ban annual flat fees on all auto-enrolment pension pots worth £100 or less to help job-hoppers who leave a string of workplace schemes.
Many, especially low earners, see their savings eroded by annual flat fees on relatively small amounts of cash.
Figures from five of the largest defined-contribution providers covering more than 11.2 million deferred pension pots show around a quarter are smaller than £100.
Alarmingly, experts suggest £100 saved in a workplace scheme by a 22-year-old could be wiped out by fees during their employment.
Pensions minister Guy Opperman said yesterday: “Protecting savers and giving them value for their money is my priority.”
He said the fees crackdown would “help them enjoy the retirement they deserve”.
‘Consequences’
This story is from the January 13, 2021 edition of Daily Express.
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This story is from the January 13, 2021 edition of Daily Express.
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