The impact of charges is the most important factor in long-term outcomes for pensions savers, according to a report by the Pensions Institute, which also called on regulators to require low total expanse ratios (TER).

The report, the findings of which were published in the Financial Times, is published on the same day the UK undergoes a radical reform of the workplace pensions market, as auto-enrolment kicks off today.

The Pensions Institute report said there was little academic argument to support the idea that asset management and the potential for outperformance was more important than cost.

The report highlights the higher TERs of schemes introduced in the 90s and early 2000s, and argues that regulators, such as The Pensions Regulator, should require low TERs.