Delay in pensions charge cap ‘makes sense’ says Barnett Waddingham

Commenting on reports today that the government is to delay the cap on management fees charged by pension providers, Damian Stancombe, partner, says:

“This delay makes sense as the pensions industry has bigger fish to fry with the thousands of small companies who must auto-enrol their staff into a pension this year, this may be the real reason for the delay.

“The proposed cap on fees is a bit of a blunt instrument in that it does not address the fundamentals of what really adds value to a scheme member’s pension outcomes. Trustees and companies need to understand that capping charges may not result in the best possible final pension for scheme members."