What impact do fees have upon your pension?
A report this week has cast a very dark shadow on the UK pension industry with accusations that UK pension arrangements are being hammered by fees which can in some cases add up to hundreds of thousands of pounds before retirement is taken. Some experts in the pension industry believe that for example someone saving £200 a month for their pension could suffer fees in excess of £200,000 over a 40 year period. In some cases this can lead to a final pension of around half that which similar savings patterns would attract in Europe.
This is the often hidden face of the UK pension industry although it has to be said that all fees and charges are detailed in pension fund agreements. We all need to take more care when looking towards saving for our future because ultimately every pound that we pay in charges will lead to a reduction in our final pension income. It is also worth noting that it is not simply the deduction of fees which can impact upon your future pension payments but the very fact that £1 taken out of your scheme today is £1 less than you have to reinvest for potentially the next 40 years. This is the real damage which is being done to your pension arrangement!
Share this..
Related stories
Government reveals public sector pension overspend
Public sector pensions overpayments since 1978 exceed £120 million, the government has admitted.A minister has also said that claiming back the money would not be possible for cost reasons.Payments to workers such as NHS doctors and civil servants are included in the total.Some pensions are to be reduced from the start of the new financial year next April as a result of the finding.Liam Byrne MP,...
Read MoreAnnuity rates 'increasing due to credit crisis'
Annuity rates are on the up as a direct result of the credit crunch, the Observer reports.Figures from stockbroker Hargreaves Lansdown cited by the newspaper show that average rates have increased from around seven per cent early last year to 7.85 per cent for male retirees.This is due in part to rises in yields from corporate bonds - which has in turn been caused by their increased popularity in...
Read MoreCan you trust your pension scheme?
As pension funds hit the headlines once again with massive shortfalls across the UK there is concern amongst many pensioners and would-be pensioners about their future. Can their current employer pension scheme be trusted? Are they protected in any way for the future?
When the government has changed the regulations regarding pensions and pension protection over the last few years it...
Labour look to break down barriers for self employed
18/11/2014 Labour shadow ministers have met with business leaders to discuss the current problem of self employed people having little access to mortgages and pensions. Figures from the Office of National Statistics show that the rate of self employed people has risen by 13% in the last four years, rising to 4.2 million people in January. Out of these 4.2 million people, only 22% contributed...
Read MoreOECD: UK has one of the least generous state pensions
02/12/2015 The UK state pension has been found to be one of the least generous in the world, according to a report from The Organisation for Economic Co-operation and Development (OECD). The report from the international think tank found that out of the 34 countries who are members of the OECD, 31 countries have more generous pensions than the UK. Only two countries pay poorer pensions, Mexi...
Read More