The National Association of Pension Funds (NAPF) has welcomed the Government’s consultation today (Wednesday) on pension charges and calls for a wider debate about ensuring transparency and value for money.
The NAPF points out that charges have decreased over the past few years and the average charge now stands as low as 0.51%. The NAPF believes that a charge cap should not be considered in isolation and that members of schemes should benefit from quality and efficiencies that increase their pension savings.
Helen Forrest, NAPF Head of Policy & Advocacy said:
“The NAPF wants to see pension schemes that offer quality and value for money to scheme members.
“Charges should be seen as part of a bigger picture that includes quality of services provided to savers through their working life and a robust investment strategy that generates good returns.
“The NAPF believes that transparency, good governance and scale are important in ensuring good member outcomes. The NAPF will be responding to the Government consultation.”
The NAPF has been leading on industry initiatives to increase the transparency of charges. Last year, we published Pension Charges Made Clear: Joint Industry Code of Conduct to increase disclosure and transparency in the costs and charges taken out of savers’ pension pots. This recommended that employers are given a summary of charges document, along with a services table, to demonstrate the value provided to scheme members. The Code took effect last month.
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Dee Sullivan, Head of Media and PR, (interim), 020 7601 1717 or 07917 506 683, [email protected]
Aimee Savage Richards, Press Officer (interim), 020 7601 1718 or 07825 171 446, [email protected]