U.K. Employees Warned of ’Buying Blind’ Into Pension Plans
This article is for subscribers only.
U.K. employees enrolling in company-sponsored pension plans may be “buying blind” into funds charging high fees that could reduce their savings by as much as 50 percent, according to a report by Cass Business School.
Ninety percent to 97 percent of employees joining a company pension plan use the default fund offered, meaning whether they end up with a large or small retirement fund is a “lottery” due to fees, said the report. Smaller employers are more likely to use older funds with higher charges, it said.