Consumer group Which? wants the Financial Conduct Authority (FCA) to take action to simplify drawdown charges to make pensions freedom and choice retirement income options easier to understand.
It said both the regulator and the government should help people benefit from pensions freedom and choice as it revealed wide variations in provider charges. It said it had analysed products from 18 companies to find out how much it costs to take money in retirement. Which? said someone with a pension pot of £50,000, taking 4% a year through income drawdown, could be more than £3,000 better off over ten years if they used the cheapest provider, Fidelity (£4,993), rather than the most expensive, The Share Centre (£8,100). For larger pots of £250,000, with 6% a year withdrawals, a re...
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