Pensions minister Steve Webb has today announced that the Government will cap pension charges at 0.75% from April 2015.
The cap covers default fund charges. Transaction costs are not included in the cap, but the government is looking at making these costs more transparent.
Webb has said “We are going to put charges in a vice and we will tighten the pressure year after year.”
The pensions industry expected the cap to come in this year, but it has been delayed to April 2015. The rate will be subject to review in 2017. At that time the Government could lower the rate and include transaction charges.
At BHP Financial Planning we are already helping many current and new clients through the auto enrolment process. We are currently working with pension providers whose charges are already very close to or at the 0.75% level.
We have also helped clients move providers where the pension scheme was facing charges of up to 2% per annum.
We can offer a full review of your existing scheme or design you a new auto enrolment compliant scheme from the start right through to the payroll deductions.
Contact Andrew Ramratten if you would like further details.
