Pension savers will soon be able to compare the performance of their workplace pension scheme to others – meaning they can switch to a better scheme if they are not happy.
Pension schemes will be placed in a league table based on their investment performance, costs and charges and quality of service, and rated on a traffic light system from red – for poor value – to green –outperforming on value.
The Government says that at the moment, the wide range of performances among different schemes means someone with a £10,000 pot in one of the poorest pensions could be £5,000 worse off after five years than someone with a high-performing one.
Shorts
The poorest-performing schemes will have to improve or close.
