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FCA: half of advised clients don't know their pension charges

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FCA: half of advised clients don't know their pension charges

Nearly half of those who have received advice within the last 12 months do not how much they are paying for their their defined contribution (DC) pension.

A Financial Conduct Authority (FCA) data bulletin published this morning showed that only 52% of people who had received advice within the last 12 months had any idea what the charges were on their pensions. 

This compared to 27% among those with no advice. In total, seven in 10 UK adults were not aware of what they were paying on their pension, including six in 10 45 to 54 year olds.

Three quarters of those aged between 35 and 44 had no idea what their charges were. 

Half of UK adults with a DC scheme reported that they did not choose where their contributions were invested when they set up or joined their scheme, while only 16% actively selected where their contributions ended up, with 22% opting for a defualt fund.

A further 14% did not know whether they chose their investments or not. 

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