Brits Lose 50% of Pension Income in Administration Fees
A recent report by the Royal Society for the Encouragement of Arts (RSA) published in the Telegraph on December, 6th suggests that Brits are losing as much as 3/4 of their pensions due to providers' fees.
Experts from the Royal Society for the Encouragement of Arts (RSA) are determined that retired Brits receive 50% less income than people in other European countries because investment funds and pension providers impose huge fees, which oftentimes tend to be hidden.
The organisation urges the British government to review pension legislation and to allow for set up of collective pension schemes, which are already in place in such countries as Denmark and Holland. Pension experts claim that collective schemes are more cost-effective and flexible and will help Brits receive 50% more income during their retirement years.
The Trades Union Congress (TUC) supports the initiative of the Royal Society for the Encouragement of Arts and also calls for the introduction of collective pension schemes.