Nearly three-quarters (71%) of delegates at the National Association of Pension Funds (NAPF) Investment Conference do not believe pension funds are getting value for money from consultants, providers and active asset managers.
During a panel debate, which followed the poll, Robert Brown, chairman of the Global Investment Committee at Towers Watson, argued that costs are too high.
He explained that between 80 and 90% of the cost of running a pension scheme comprises fees paid to asset managers and transaction costs.
According to Brown, a significant amount of investment and resource is spent on stock selection, rather than more important issues, such as strategy.
Chris Hitchen, chief executive of RPMI, said: “We need to find a new model if we want to reignite pension saving in the UK.”
Cost needs to be at the top of the agenda in order to make the pensions industry more productive and efficient for savers, added David Pitt-Watson, executive fellow at London Business School.
He also said that more information about costs and what these include is needed.