Pension schemes will have to disclose their investment charges under plans outlined by the government.
The new proposals will allow savers to access information about where their money is invested, as well as details about the costs of these investments.
Failure to provide this information could cost occupational workplace pension scheme trustees up to £50,000 from April 2018.
Secretary of State for Work and Pensions David Gauke, explained that the proposals address the need for greater transparency around pensions and how they operate.
‘I want people to have a strong sense of personal ownership over their pension savings. These proposals do just that and will open the industry,’ he said. ‘By giving people the tools to better understand their options and compare value for money, I believe we are creating a generation of smarter, more informed savers.’
The consultation into these proposals is open until 6 December. It is hoped that the changes will enable pension scheme trustees and others to compare the value for money they are receiving with their peers, thereby driving better market outcomes.
