04 October 2010
The BBC Panorama program claims that people are losing thousands
in pension fund charges.
The review, which is based on a person contributing £200
per months for a period of 40 years, which would provide an
estimated fund of £120,000 from a pension pot has found the
following charges would be applied.
- HSBC Pension plans are estimated to take fees totalling
£99,900.
- Co-Op Individual Personal Pension plans are estimated to take
fees totalling £96,000.
- Legal & General Co-Funds Portfolio Pension is estimated to
take fees totalling £61,000.
HSBC have stated that their pension product is competitive.
The Co-Op have said:
"Our pension charges are fully transparent, and include not only
investment costs, but also the administration expenses and
financial advice provided."
"The vast majority of our customers' pensions invest in funds
with charges lower or equal to the 'stakeholder' government-set
levels."
Pensions experts said that the rise in fees are related to the
fund management and can incur multiple fees based on the management
of the fund, annual fund charges and others, such as an
establishment charge.
Maggie Craig from the Association of British Insurers (ABI) has
said in response to the fee structure:
"We know that the majority of our customers are paying between
0.5 and 1%, so that starting with a charge that is double (1.5%)
what the majority are paying, you're bound to end up with a
different answer"
To see the BBC press article click here
