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People nonplussed by pension charges
7 February 2008 12:00
Many Britons saving into a pension are either unaware of the charges attached to their product or consider these fees to be too high, a new survey has revealed.
One in three pension savers ignored the charges connected to their product when they took it out, Fidelity International's poll found, while roughly a third of both stakeholder pension and self-invested pension plan (Sipp) holders do not know what these fees are.
Among the majority who do know how much their Pension provider charges them, over one in four believe that these fees are set too high, rising to almost half of all people saving into SIPPs.
Fidelity International's David Dalton-Brown questioned why so many people overlook the cost of their pension and advised savers to make the most of their money by ensuring that high charges do not eat away at their final pension pot.
A study carried out last year by Alliance Trust indicated that 28 per cent of Britons believed personal pensions would be one of the three biggest contributors to their retirement incomes, marking a two per cent increase from the year before.
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