Pensions Minister, Steve Webb, has called for a change to excessive pension fees from leading pension companies. Thousands of people are caught in expensive old-style pension schemes which can charge fees up to 4% amounting to a total deduction of over £100,000 of an individual’s retirement fund.
In Webb’s Telegraph article he writes:
“I would like to see the leading companies look again at their ‘back book’ of old pension policies. They should ask themselves if the battered reputation of their industry would not be greatly enhanced if they were to revisit these schemes and offer scheme members fairer terms.”