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| Version 0 | Version 1 |
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| Labour promises 0.5% cap on pension charges | Labour promises 0.5% cap on pension charges |
| (about 14 hours later) | |
| Labour has promised to put a 0.5% annual cap on pension charges if it wins the next election. | Labour has promised to put a 0.5% annual cap on pension charges if it wins the next election. |
| It said the limit on management charges would be 0.75% to begin with, but that would be reduced within the lifetime of a parliament. | It said the limit on management charges would be 0.75% to begin with, but that would be reduced within the lifetime of a parliament. |
| It has also confirmed that workers buying an annuity with their savings would have to be referred to a broker for impartial advice. | It has also confirmed that workers buying an annuity with their savings would have to be referred to a broker for impartial advice. |
| The government has already promised to introduce a cap in 2015. | The government has already promised to introduce a cap in 2015. |
| Labour said that pensioners, by shopping around when buying an annuity, an income for life, could get up to £400 a year extra. | |
| Quoting figures from the House of Commons library, it said that even those with small pension pots of £15,000 could be £173 a year better off. | Quoting figures from the House of Commons library, it said that even those with small pension pots of £15,000 could be £173 a year better off. |
| Delay | Delay |
| "Rip-off pension fees and charges are costing savers thousands of pounds," said Rachel Reeves, Labour's shadow work and pensions secretary. | "Rip-off pension fees and charges are costing savers thousands of pounds," said Rachel Reeves, Labour's shadow work and pensions secretary. |
| "An astonishing £1bn a year is lost because people aren't offered the best deal when they approach retirement," she said. | "An astonishing £1bn a year is lost because people aren't offered the best deal when they approach retirement," she said. |
| The Conservatives said the proposal was another sign of Labour "taking hardworking people's private pensions". | |
| A spokeswoman said: "Labour are prepared to cut the basic state pension and they have no long-term economic plan to secure Britain's future. | |
| "They would make people's retirement less secure all over again." | |
| The government has already promised to cap pension charges, but has delayed implementation until April next year. | The government has already promised to cap pension charges, but has delayed implementation until April next year. |
| It has not yet decided how low the cap should be, but it has also been considering 0.75%. | It has not yet decided how low the cap should be, but it has also been considering 0.75%. |
| Figures from the Department for Work and Pensions (DWP) have suggested that workers paying charges of 1.5% a year face losing up to £230,000 from their pension pots. | Figures from the Department for Work and Pensions (DWP) have suggested that workers paying charges of 1.5% a year face losing up to £230,000 from their pension pots. |
| Steve Webb, the Pensions Minister, has already promised a "full frontal assault" on charges. | Steve Webb, the Pensions Minister, has already promised a "full frontal assault" on charges. |
| But, announcing the delay last month, he said it was only fair to give employers a full year's warning about the changes. | But, announcing the delay last month, he said it was only fair to give employers a full year's warning about the changes. |
| Code of conduct | Code of conduct |
| Some in the industry have expressed concerns that a cap would, in effect, become a new minimum charge. | Some in the industry have expressed concerns that a cap would, in effect, become a new minimum charge. |
| In many cases, charges are already lower than the potential cap. | In many cases, charges are already lower than the potential cap. |
| A study of auto-enrolment pensions by the Office of Fair Trading (OFT) found average management charges were 0.51%. | A study of auto-enrolment pensions by the Office of Fair Trading (OFT) found average management charges were 0.51%. |
| Some, particularly older schemes, charged more than 1%, and a handful charged above 2%. | Some, particularly older schemes, charged more than 1%, and a handful charged above 2%. |
| Under the industry code of conduct, pension providers are already obliged to give information packs to consumers to help them decide which annuity to buy. | Under the industry code of conduct, pension providers are already obliged to give information packs to consumers to help them decide which annuity to buy. |
| The Financial Conduct Authority is also investigating how much difference it can make if people shop around for an annuity. | The Financial Conduct Authority is also investigating how much difference it can make if people shop around for an annuity. |