Pensions can be too pricey, says Labour

Published on 16/07/2012 00:00

Private pensions in Britain can be too expensive and not trusted by people entering retirement, Labour said today, following a policy review.

Some 10 million private sector workers across the UK are set to be brought into pension schemes from October under new auto-enrolment laws coming into force.

Labour said a new low-cost scheme, provided by a Department for Work and Pensions quango called Nest, would help but added the scheme had limitations.

Shadow work and pensions secretary Liam Byrne said in the current worst cases, pensioners face losing up to half of their pension pot to charges and hidden costs.

Publishing the review, Mr Byrne said: “We all know we need to save more for the future. That means we need a system that builds your pension pot, not eats your pension pot.”