Britain’s pensioners are paying £1.5 billion a year more in “rip-off” fees to pension fund managers than they need to, according to a new analysis.
The charges applied by these pension fund managers to choose and administer investments can vary wildly without justification.
Analysis conducted by data analytics company ClearGlass found some pension fund plans are paying up to 14 times more for the same investment product compared to others.
Chris Sier, chief executive of ClearGlass, told the Financial Times: “Some clients are being treated bloody unfairly.
“Asset managers appear to price in an extreme range and offer different clients vastly different prices for the exactly the same thing. The result is some clients are effectively subsidising the prices offered to others.”
The fees paid by pension funds are important as they can dramatically cut the eventual payouts to savers once they reach retirement, making them poorer in old age.
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