Levy could reduce pension values by 21%

Private sector pension funds could lose more than 21 per cent of their final value if the government’s new levy is retained indefinitely, dramatically reducing retirement income for hundreds of thousands of savers, financial advisors have warned.

14th May, 2011
Levy could reduce pension values by 21%
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Private sector pension funds could lose more than 21 per cent of their final value if the government’s new levy is retained indefinitely, dramatically reducing retirement income for hundreds of thousands of savers, financial advisors have warned.

Research conducted by pensions advisory firm IFG into the impact of fees shows that a 0.6 per cent annual deduction, through compounding, can rob a fund of more than a fifth of its expected assets on drawdown.

‘‘Every...

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