UK. PensionBee flags risks of Now Pension fee structure
Fintech consolidator PensionBee has warned of “an unacceptable level of risk” that a large proportion of pots in Now Pensions will be eroded to zero by charges.
Last month the master trust, the third biggest in the market, defended its charging model after criticism from Labour MP Steve McCabe.
Mr McCabe, a member of the Work and Pensions select committee, said at a hearing in Parliament that Now Pensions had a charging structure where they charged a £1.50 admin fee a month per member on top of a 0.3 per cent annual management charge.
At the time, Adrian Boulding, director of policy at Now Pensions, acknowledged the provider’s average pension pot was small, currently about £500, and that there was a risk that members who changed jobs would see their pot “eroded by charges”.
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