A lack of transparency regarding pension transfer fees could lead to significant financial losses for UK savers, according to a report from People’s Partnership.
Pension savers in the UK face potential financial losses during retirement due to a lack of transparency over charges associated with transferring their funds. A survey conducted by People’s Partnership, the provider of the People’s Pension, discovered that 72% of individuals who transferred their pensions were unaware of the specific fees involved with either their old or new pension plans. This lack of awareness regarding charges could lead to substantial decreases in retirement savings over time.
CEO of People’s Partnership, Patrick Heath-Lay, has expressed concern over this issue, emphasizing the crucial role of informed decision-making in the process. He pointed out that without clear information on investment returns and charges, individuals are at risk of losing thousands of pounds from their retirement pots. Heath-Lay advocates for greater industry transparency to ensure pension savers have access to key information, which is essential for evaluating pension options effectively.
The survey also highlighted that only half of the respondents found it easy to obtain information on fees and charges from their pension providers, indicating a broader issue with transparency within the industry. This situation underscores the need for improvements to help protect savers from potential financial setbacks during retirement.
