Legal & General (L&G) is "demanding" the government lowers a pension charge cap to 0.5%, but one expert says imposing a cap simply pushes costs elsewhere and would leave hundreds of thousands of businesses "to pick up the bill".
L&G has challenged the Department for Work & Pensions' (DWP) proposal for introducing a 0.75% charge cap, saying it is in favour of a "meaningful" charge cap at 0.5% for both new auto-enrolment schemes and legacy pension schemes. Lowering the charge by 0.25% could reduce charges for a saver starting a workplace pension at age 22, and paying £100 per month, by as much as £40,500 by the time they retire. Conversely, a cap of 0.75% will potentially cost legacy pension scheme savers £4.3bn in lost savings, it added. "On behalf of the UK working population, we are demanding the governme...
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