Labour calls for pension savers to be put first

The Labour Party has called on pensions organisations to be forced to put the interests of savers first.

The shadow pensions minister, Gregg McClymont (pictured), argued in a pamphlet published by the Fabian Society, for more occupational pension funds to be run by trustees, with a fiduciary obligation to put the interests of savers first.

McClymont called for greater transparency around the fees charged by providers to manage pension schemes to flush out those schemes where savers lose out in their final pension because of extortionate and hidden charges.

The pamphlet also discussed new measures for encouraging greater scale in the pension provider market.

McClymont said: “Ten million people are being automatically enrolled into workplace pension saving for the first time.

“For the policy to be a success, every new saver must be offered a value-for-money pension.

“The Tory-led government should act now to ensure that we all have the chance to save into pensions people can trust.”

On 10 May, the government announced it has banned consultancy charges for auto-enrolment pension schemes, following a six-month-long review.