Profile image for Copson Grandfield Chartered Accountants

Cap on pension fees delayed

Business News 24 Jan 2014

The Government has announced that the introduction of a cap on pension charges, which was due to come into effect from April, will be postponed for 'at least a year'.

The cap on charges would have meant that pension operators could charge no more than between 0.75% and 1% for those automatically enrolled into a pension. Currently, some older schemes can charge up to 2.3% every year in management charges.

Pensions minister, Steve Webb, who had previously declared a 'full frontal assault' on the charges, said that it was 'only right and fair to give employers a minimum of 12 months' notice of the changes'. He stressed that the Government would still act 'to ensure people are not ripped off by excessive pension charges'.

News of the delay has been widely welcomed by the pensions industry.

read more here...http://tinyurl.com/nor93pt

          
 
      

Join the Discussion

       
max 4000 characters
        
      

Search for...

       
        
Min price is bigger than Max price
        
Min price is bigger than Max price
        
Min rent is bigger than Max rent