{"id":53318,"date":"2015-02-04T10:12:00","date_gmt":"2015-02-04T10:12:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=bd58433e5b87751d6fd1c0eebbbe178e"},"modified":"2015-02-04T10:12:00","modified_gmt":"2015-02-04T10:12:00","slug":"press-release-average-earners-could-gain-up-to-100k-in-new-pension-charges-reform","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=53318","title":{"rendered":"Press release: Average earners could gain up to \u00a3100k in new pension charges reform"},"content":{"rendered":"
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Minister for Pensions, Steve Webb, set out today (4 February 2015) how from April 2015, people automatically enrolled into a workplace pension will see their charges capped at 0.75%, unless they have chosen a more expensive option. The details are set out in draft regulations laid before Parliament today.<\/p>\n

For an average earner currently paying into a fund with a charge of 1.5%, this new cap could save them around \u00a3100,000 over the course of their working life.<\/p>\n

Over the next decade, the default fund charge cap will transfer around \u00a3200 million from the pensions industry to savers.<\/p>\n

Minister for Pensions Steve Webb said:<\/p>\n

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Today is an excellent day for pension savers. It is vital that workplace pension schemes are run in the interests of their members and that their hard-earned savings are not eaten away by excessive charges.<\/p>\n

Over 5 million people have now been automatically enrolled into a workplace pension and by 2018, millions more will be saving for the first time, or saving more. This is why we are building a pensions system that these workers can save into with confidence \u2013 and not see their money disappear in opaque charging structures.<\/p>\n

There is an understandable buzz around what April will bring for those retiring now, with the unprecedented pension freedoms coming in. But these reforms show we are also determined to help the pensioners of tomorrow \u2013 people working hard and saving hard for their families\u2019 future.<\/p>\n<\/blockquote>\n

Regulations are being laid today alongside the government\u2019s response to its consultation Better workplace pensions: Putting savers\u2019 interests first<\/a>.<\/p>\n

The Financial Conduct Authority will also be making corresponding rules to control charges and introducing Independent Governance Committees for workplace personal pension schemes from April 2015.<\/p>\n

Their rules, together with today\u2019s regulations, will ensure that savers are protected regardless of the type of workplace pension they are saving into. <\/p>\n

Subject to Parliamentary approval, these draft regulations will be a major step towards ensuring a positive outcome for millions of people in retirement.<\/p>\n

The next stage of the government\u2019s work to ensure full disclosure of costs and charges throughout the value chain is also set out in today\u2019s paper \u2013 with the plan to publish a joint call for evidence with the Financial Conduct Authority in spring 2015.<\/p>\n

Background<\/h2>\n

The updated draft regulations, to be laid before Parliament today, subject to Parliamentary approval, will mainly come in to force on 6 April 2015. <\/p>\n

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Read the government\u2019s response to its consultation Better workplace pensions: Putting savers\u2019 interests first<\/a><\/p>\n<\/div>\n

Read today\u2019s Written Statement on better workplace pensions<\/a> made by the Minister for Pensions, Steve Webb.<\/p>\n

Contact Press Office<\/h2>\n

Media enquiries for this press release \u2013 020 3267 5123 <\/p>\n

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Press Office<\/h3>\n
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\nCaxton House
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\nTothill Street<\/span>
London<\/span>
SW1H 9NA<\/span>\n<\/p>\n

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\n London Press Office (national media and London area enquiries only \u2013 not questions about personal claims)<\/span>
\n 020 3267 5144\n <\/p>\n

\n Out-of-hours (journalists only)<\/span>
\n 076 59 108 883\n <\/p>\n

\n England and Wales (local media enquiries)<\/span>
\n 029 20 586 then 097 or 098 or 099\n <\/p>\n

\n Scotland (local media enquiries)<\/span>
\n 0131 310 1122\n <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n

Follow DWP<\/abbr> on:<\/p>\n