Shadow pensions minister Gregg McClymont has urged pension providers to come clean about their fees to help boost trust in financial services and encourage people to save.
Speaking at the anniversary of the True and Fair Campaign, organised by asset management company SCM Private, McClymont (pictured) said lack of transparency over charges put people off saving.
‘We have a problem where individuals are saving far less than they could and this is bringing the system into disrepute,’ he said. ‘Only one third of employers are saving into a private pension, but private pensions are crucial if people are to have a decent retirement income.’
McClymont’s comments come as SCM Private published a survey of 2,000 investors which found 62% would invest more in pensions, savings and investment products if there was full transparency on fees.
He said progress had been made on transparency of charges over the last year.
‘The Investment Management Association, Association of British Insurers and the National Association of Pension Funds have discussed pension scheme charges, but for full transparency you need simple but comprehensive disclosure of costs incurred at all layers,’ he said. ‘We need much greater clarity than we currently have and I can see no objections to that. But if we think back 12 months ago, the wind of change has started to blow through.’