Under new plans from the government, workers will not see their pensions reduced by charges from consultants.
Proposals announced by Pensions Minister Steve Webb include a ban on consultancy charges for auto-enrolment schemes, as well as a cap on other pension fees that are charged to those with defined contribution pensions, which they are automatically enrolled into by their workplace.
The move comes as the Department for Work and Pensions (DWP) published the Pensions Bill – outlining, in detail, plans to overhaul the state pension.
Currently, consultancy firms can give advice to employers but take their fees from employees’ pension pots.
‘With millions of people taking up pension saving for the first time under automatic enrolment, we have to give people confidence that they will get good value for money,’ said Pensions Minister Steve Webb.
Auto-enrolment began in October 2012 and aims to ensure all workers have a provision for their retirement.
Find out more about auto-enrolment in the news.