According to the latest Money Management Pension survey, charges are wiping thousands of pounds of people’s private pensions. In the worst case it said the highest charging plan takes £21,140 out of the projected fund. This figure relates to the Skandia plan that has a 6.3pc adviser fee, plus 0.5pc trail commission paid to the adviser each year. Someone investing £200 a month over 25 years could expect a pension worth £157,494 if the plan was fee-free. The Skandia plan would be worth just £120,050.

But Skandia wasn’t the only provider named and shamed in the survey. Axa’s with-profits personal pension would be worth just £127,853 after charges and a Legal & General plan would be worth just £122,225. The best fund with the lowest charges was B&CE – its plan would be worth £142,566.

Money Management said that it is generally accepted that high charges can be justified if...Read more on this story---> Fees knock 25pc off the value of your pension fund - Telegraph