It is estimated that millions of people in the country are losing a significant value of their pension because they are being hit by unfair fees that are being hidden from them when they first take out their pension. This warning has been issued by the RSA, an industry watchdog and think tank which has conducted research in the area.
It is estimated that those who are in one of these unfortunate pension schemes are going to lose out on around £100,000 because of the mis-selling of the pension. Pension fund managers, according to the think tank, fail on a huge scale to inform those taking up the pension about the significant fees. The think tank found that around 90 percent of pension fund managers failed to take this informing action.
The study has been conducted over a year and has shown that some workers in the UK are simply unable to have a catch free pension that is simple like those found everywhere else in Europe. An author of the report, David Pitt Watson has stated, “People need to have access to a report that displays accurate and straightforward information. It is remarkable that a system that offers this simplicity is not present in this country and it is something that needs to change very soon.”
The report compares the pension situation in the UK with other countries such as Denmark. In Denmark people are given an annual account of their pension which looks like a bank statements and highlights all of their savings and the various investments. The report also looks at the two percent annual charge which when considered over the life of the pension can up to halve its total value.