Building a Pensions System Workers Can Save Into - With Confidence

9 Feb 2015
Lib Dem logo bird projected on blockwork

From April, workers enrolled into a workplace pension will see their charges capped at 0.75 per cent unless they have opted into a more expensive option.

It means for an average earner currently paying into a fund with a charge of 1.5 per cent, this new cap could save them around £100,000 over the course of their working life.

Over the next decade, the default fund charge cap will transfer around £200m from the pensions industry to savers.

Steve said: "Today is an excellent day for pension savers. It is vital that workplace pension schemes are run in the interests of their members and that their hard-earned savings are not eaten away by excessive charges.

"Over 5 million people have now been automatically enrolled into a workplace pension and by 2018, millions more will be saving for the first time, or saving more.

"This is why we are building a pensions system that these workers can save into with confidence - and not see their money disappear in opaque charging structures.

"There is an understandable buzz around what April will bring for those retiring now, with the unprecedented pension freedoms coming in.

"But these reforms show we are also determined to help the pensioners of tomorrow - people working hard and saving hard for their families' future."

In Government, Liberal Democrats have Increased pensions by £800 a year since 2010, thanks to our new 'triple lock' rule which ensures state pensions always rise with inflation, earnings or 2.5% - whichever is highest.

More than 11m pensioners will now receive £950 more in their pension than they did in 2010.

Liberal Democrats have made a manifesto commitment to enshrine the triple lock in law.

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