Pension savers warned 'they risk losing thousands' due to overlooking charges

Pension savers have been warned they might be losing thousands of pounds because they are overlooking charges for transferring their pot. A survey for People's Partnership, which runs the People's Pension, found that 72% of people who moved their pension didn't know the exact fees they were paying before or after.

People's Partnership says it's important for the pension industry to be clear so savers can understand what they're being charged. Small fee differences can add up over time and make a big difference in how much money you have when you retire.

The growth of the money you put into your pension is also key, according to People's Partnership.

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Patrick Heath-Lay, chief executive officer at People’s Partnership, said: “While there are many factors that can make a pension attractive, the two fundamental aspects are investment returns and charges.”

He added: “If people can’t make an informed decision about the value they are being offered by different providers, they risk losing thousands of pounds from their retirement pots.

“This lack of transparency is an enormous issue that pensions providers have to address.”

A survey commissioned by People's Partnership in November to December 2023 found that half (50%) of the 1,000 people who had consolidated their defined contribution (DC) pensions without a financial adviser in the previous two years said it was easy to find information on fees and charges from both their old and new pension providers.