The aim of reducing pension charges is shared by almost everyone. The proposed cap by Ed Miliband would affect relatively few Group Personal Pension Schemes of medium and large employers where most full time employees participate. If clients want greater fund choice and good quality professional advice they will have to pay for it. I am concerned that a cap if implemented would lead to a reduction in quality of advice and choice for the client. As any Independent Financial Advisor worth his or her salt will tell you the difference in performance of choosing the best quartile investments and the bottom quartile investments will be greater over a 30 year period than reducing pension charges from 1.5% to 1%. Also how are pension savers outside the industry supposed to know what investment options within the pension are most suitable for their risk profile? As with most things in life you get what you pay for.rnrnThe article which inspired this blog post is http://www.moneymarketing.co.uk/pensions/advisers-criticise-milibands-pension-charge-cap-proposal/1058822.articlernThis information is intended to provide a general review of certain topics and its purpose is to inform but not to recommend or support any specific investment or course of action. The tips may not apply, or be suitable, to everyone and you should contact us for advice if you are unsure whether this is the case.rn
