Millions of workers will finally discover how much is snatched from their company pensions each year in charges. Some 14 of the country’s biggest insurance companies have agreed to spell out the true cost of previously hidden commissions and fees which can wipe up to 40 per cent from savers’ nest eggs. The pledge comes as up to 11million workers are expected to sign up to a work pension for the first time in the biggest savings shake-up for more than a century. Pensions Minister Steve Webb called it a ‘welcome step’, with consumer campaigners saying it is ‘long overdue’.

It marks a victory for Money Mail’s ‘Get Britain Saving’ campaign, which has called for clearer information on pension costs. A list of charges will be broken down in an annual statement rounded up to the nearest pound. Firms will also have to spell out any costs up front to savers taking out a pension, including fees for joining or leaving a scheme. But critics pointed out that the pledge does not apply to an estimated six million savers with personal pensions and criticised the delay in introducing the change. Insurance companies have been accused for years of burying the cost of pension charges, which range from annual fund charges to hidden commissions paid to middlemen, such as brokers.....More here: Pension firms lift the lid on charges that cost company workers millions