Sunday 26 March 2017

Having fewer pension plans is a great idea - but will it work?

The average annual charge of 2.18pc could diminish a final pension pot by as much as a third
The average annual charge of 2.18pc could diminish a final pension pot by as much as a third
Charlie Weston

Charlie Weston

On the face of it, reducing the number of pension plans out there is a great idea. The head of the regulatory body - the Pensions Authority - has said there are too many schemes.

According to the CEO of the authority, Brendan Kennedy, there are 150,000 defined contribution plans. He wants the overall number reduced to around 100 - a move that he feels will put pressure on pension providers and asset managers to reduce their fees.

And there is no doubt that fees are a big issue. A report in 2012, commissioned by the Department of Social Protection and the Pensions Authority, warned that fees in the pension industry were often too high.

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