New research from UK-based Fidelity International, a provider of investment products and services, has revealed that six out of 10 savers have no idea how much they are paying every year in charges.
Nearly a third of people with a stakeholder pension and one in three with self-invested personal pensions (SIPP) are unaware of the charges they pay. Of those who are aware of charges, more than a quarter feels that they are set too high. This figure rises to 46% among those with a SIPP.
The research also found that one in three pension savers admitted to not even considering the charges when they took their policy out, despite the fact they could be squandering hundreds every year in unnecessary high charges.
David Dalton-Brown, head of Fidelity FundsNetwork, said: Most people would not dream of paying over the odds for their gas bill or their car insurance, yet a pension, as one of the most important pieces of financial planning you will ever do, is often overlooked. It is equally important that savers in to personal pensions, including SIPPs, make the most of their savings and ensure that high charges are not eating away at their long term returns.