Pension providers under pressure over high-charging schemes

Providers which run high-charging legacy pension schemes face renewed pressure to rethink their terms or charging structure in order to provide better deals for savers, after a report identified billions of assets in potentially poor value schemes.

A report into defined contribution (DC) workplace pension scheme charges has found that out of £67.5 billion assets in these schemes, up to £25.8 billion is exposed to charges over 1% half of which is exposed to charges of over 1.5%.

The report, conducted by the Independent Project Board (IPB), found that up to £8 billion of DC assets was exposed to charges over 2%.