Pensions Hit by Fees and Commissions
Byline: Neil Lancefield
PENSION companies are taking fees and commissions worth the equivalent of 80 per cent of money paid into some pension plans, according to an investigation released today.
BBC Panorama found that paying pounds 120,000 into one HSBC pension plan over 40 years would result in pounds 99,900 being taken out.
The Co-op Individual Personal Pension came in at second most expensive, with nearly pounds 96,000 in fees and commissions for the same amount and period.
While in third place was Legal and General's Co-funds Portfolio Pension, which would take out pounds 61,000.
The investigation used figures provided to the finance education organisation Consumer Financial Education Body, and figures supplied to the programme by the companies themselves. HSBC told Panorama that their World Selections Personal Pension offered "good value for money" and was "certainly not one of the most expensive pension schemes in the market."
They said that 20 per cent of the pounds 99,900 taken in fees was profit and the pension was popular with customers. …