RDR proposals could cost scheme joiners £350 each

The employee benefits consultancy says the RDR proposals would see employees paying advisory and management costs to join a company pension scheme up front. These costs can currently be covered by commission which is payable over time and therefore manageable. Creative Benefit Solutions chairman Doug Johnstone says: "These costs will impact on the number of employees saving for their pension. £350 is a significant sum of money and we fear people will opt out of occupational pensions, even with the forthcoming auto-enrolment legislation." Johnstone adds: "Employees will have to pay...