The Personal Accounts Charge Challenge

There has been talk about a charge of 0.5% or even 0.3% of funds a year. The Personal Accounts Delivery Authority (PADA) recently took this debate a step further by launching its first consultation covering charges. It, however, was more concerned with what the best charging structure should be, and what trade-offs should be made in arriving at that decision. A straight annual management charge is not the only option on the table. It may be the simplest, and the one the pensions world is most used to, but it means receiving low charges initially when setting up the policy, at a time when ...