You’re Actually Ripped Off Thousands Of Pounds From Getting Lump Sums From Pension Pots!
The average possible total in fees for a pension pot’s lump sum is about £16,500. But how does Aviva, Scottish Widows and Prudential gain so much as £25,300 from every pot that exists?
Consumer group Which? investigated into the matter and found that most of high-street pension service providers charge more than 10 per cent of the original pot. For a £50,000 pot you could expect to pay as much as £3,000 in withdrawal fees between providers.
The high prices include the £280 for set-up charges, £270 for withdrawal and £3000 in annual management fees. Combine these together within ten years and you may be paying tens of thousands to your service provider.
Which? reports that the six pension companies and 12 investment comes after the public has withdrawn more than £1.8 billion from their investment funds. By taking lump sums, pensioners could reinvest their money.
However, some huge companies are taking advantage of the situation by pushing up the prices for services.
According to analysts, George Osborne had done a great deal to help people do more with their money. However the public can never trust the service providers to do the same.