UK. Individual personal pensions fare worse than group pensions, shows research
The study finds that individual investors lose out by over 1 per cent a year in comparison with group personal pension plans negotiated by employers, even before differences in fees are taken into account.
The findings suggest that personal investors are offered worse financial deals from the outset. The performance targets of the individual scheme funds are less challenging than their group counterparts and fund managers tend to be less successful in tracking their benchmarks.
This is the first study to analyse investment opportunities offered to personal investors, rather than concentrating on the impact of financial education and understanding of basic financial concepts on financial decision-making and returns.
Full Content: Phys Org
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