Charges lower in trust-based schemes

Towers Watson research says trust schemes cost members less. Jack Jones analyses

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Members of the UK's biggest contract-based defined contribution (DC) schemes are paying significantly higher charges than members of trust-based schemes, according to research from Towers Watson.

The consultant's latest FTSE100 DC Pension Scheme Survey found that the average annual management charge (AMC) on passive funds was 0.22% in trust-based schemes and 0.38% in group personal pensions...

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