Pension savers losing thousands due to drawdown schemes’ high investment charges

Written by Adam Cadle
26/03/2018

Pension savers are losing thousands of pounds from their pension pots as a result of high investment charges on drawdown schemes.

According to research carried out by Which?, and shared exclusively with The Times, savers paid £12,000 more than others over 15 years.

The Which? investigation found that someone who invested a £250,000 pension pot into a Standard Life Active Money Sipp would incur fees of £38,144 over 15 years. It was the most expensive of the none pension companies and 13 investment broker schemes examined.

However, if a saver has chosen a Sipp from online service Interactive Investor, they would have paid £26,043 - £12,101 less.

Which? has called for transparency and comparability of charges.

“People should be able to make an informed decision, but it is extremely hard to compare fees when they are presented inconsistently. The FCA must introduce a charge cap on default products to ensure that consumers don’t miss out on the savings they need for retirement," Which? author Paul Davies said.

    Share Story:

Specialist FTB and BTL markets
Adam Cadle talks to Vida Homeloans director of sales - mortgages Louisa Sedgwick about the specialist first time buyer and buy to let markets

Newsletter

Subscribe to our newsletter to receive breaking news by email.




MoneyAge welcome
MoneyAge Editor Adam Cadle discusses the brand and what is on offer

World Markets (15 minute+ time delay)
FTSE
7,368.17
+39.25
S&P 500
2,670.14
-22.99
Nikkei 225
22,162.24
-28.94