Cheltenham MP Martin Horwood has welcomed new rules unveiled yesterday to safeguard pension savings from high and unfair charges.
Martin was commenting on draft regulations set out by Liberal Democrat pensions Minister Steve Webb which state that from April people automatically enrolled in work place pensions will see their charges capped at 0.75%. For an average earner currently paying into a fund with a charge of 1.5%, this new cap could save them around £100,000 over the course of their working life.
Martin said “I am proud that the Lib Dems in government have delivered reforms to pensions that will benefit so many people in Cheltenham, both those who are currently working and those who have finished their careers and are now enjoying retirement.
Auto-enrolment in workplace pension schemes means thousands of people in Cheltenham will be saving for the first time and the additional regulations announced today will ensure that these schemes are run in the interests of their members and that their hard-earned savings are not eaten away by excessive charges.”
Steve Webb MP said “There is an understandable buzz around what April will bring for those retiring now, with the unprecedented pension freedoms coming in. But these reforms show we are also determined to help the pensioners of tomorrow - people working hard and saving hard for their families’ future.”
The Financial Conduct Authority will also be making corresponding rules to control charges and introduce Independent Governance Committees for workplace personal pension schemes from April 2015. Their rules, together with new regulations, will ensure that savers are protected regardless of the type of workplace pension they are saving into.