Many of us are having to work for longer to deal with the pressure our finances are under. But if changes to the pension markets don’t work for consumers, our plans for the future could be put on hold even further.
Many of you will have conscientiously saved into a pension over the course of your working life. The Government’s auto-enrolment policy will mean everyone in the workplace has the opportunity to start contributing to a pension. But joining a pension scheme doesn’t guarantee a comfortable retirement.
That’s because you might be stuck with rip off pension charges. Millions of people are, but the trouble is, many of you won’t realise until it’s too late. By then, your pension pot may already have been significantly reduced.
Plans to reform our pensions pots
Last week the Government announced plans to reform the pensions market. It proposed a cap on administration fees for auto-enrolment schemes. But we don’t think these plans go far enough. We believe the cap should be lowered from the suggested 0.75%, to 0.5%. We want this cap to cover all and new and existing workplace pensions. We don’t want you to be penalised for the years you’ve already invested your hard-earned cash.
Gone are the days of a job for life. Many of us adapt our working lives, take opportunities or move jobs as our personal circumstances demand. So we’re also calling on the Government to stop charges from being jacked up when you switch jobs.
Cut the pension cap
We’re pleased the Government is consulting on pensions but we urgently need new, minimum standards for all workplace pensions so people can be confident that they’re being enrolled into high quality, good value schemes.
With your help, we’ve successfully campaigned for an end to consultancy charges on auto-enrolment pension schemes. The Government and regulators took action, and in May this year, announced a ban on charges for auto-enrolment schemes. And we’re confident we can get further action as we demand fund managers keep their hands off our pensions.
Anyone paying into a workplace pension scheme should feel confident that their money is being well looked after, not lining the pockets of a fund manager. With consumers being squeezed by the rising cost of living, there’s no room for rip off pension schemes to come back to bite us after our working life.