Responding to the Government’s plans for the automatic transfer of smaller pension schemes, Richard Lloyd, Which? executive director said:
“It’s vital that people get the most out of every penny they save for retirement so we are disappointed the Government is pressing ahead with the ‘pot follows member’ approach which could mean small pension pots end up in poor value schemes.
“The Government should set clear quality standards for workplace pension schemes and protect savers from excessive fees.”
Which? research has also revealed the risk of high levels of consultancy charging in workplace pensions offered by insurance companies, which could mean low to middle income earners have to contribute four, five or even six years before seeing any return. Which? is calling for action from the Department of Work and Pensions and the Financial Conduct Authority to stop consumers being hit by these unnecessary and unfair charges.