Royal London's independence governance committee (IGC) has reported that charges for members have fallen and considers transaction costs across its default funds are good value.
According to its second annual report on Royal London's contract-based defined contribution (DC) pension funds, the IGC said changes agreed last year saved an estimated £15m for policyholders.
These included the removal of plan fees on workplace pensions that were no longer receiving contributions and the removal of some exit charges over the course of 2016.
The average annual management charge (AMC) for all workplace pension plans fell from 0.74% as at 31 December 2015 to 0.71% as at 21 December 2016.
The average AMC for new members of the same plans fell from 0.69% to 0.65% over the same period.
The IGC also set out to improve its understanding of transaction costs in Royal London's default funds.
It calculated that in 2016 across Governed Portfolios four, five and six in Royal London's default lifestyle strategy, a typical customer with a £30,000 investment would have incurred transaction costs of £25, £7, and £9, respectively.
This is compared to investment growth during 2016 across each of the strategies of £4,753, £4,492, and £3,669, respectively.
The three portfolios are multi asset, holding a mixture of equities, property, corporate and high yield bonds, index-linked gilts, commodities, absolute return and cash.
A breakdown of the transaction costs shows that last year the biggest impact was tax while 'implicit costs' or 'market impact' had a "positive effect and reduced overall costs", according to the report.
Based on these figures, the IGC said it considers the transaction costs are consistent with its value for money principles for such costs.
Royal London IGC chairman Phil Green said it decided to show the transaction costs in pounds and pence so customers could better understand them: "We wanted to break down transaction costs in a way which the majority of policyholders could understand. We are trying to write a report for the customer.
"Our confidence to do this comes from the objective to look at transaction costs in a way that the majority of customers can understand. These costs came out as quite miniscule compared to the investment returns in the default funds which were analysed."
Better understanding of transaction costs could boost people's engagement with pensions and saving for retirement, he argued.
He added: "If providers can engage and help inform people more, hopefully they will become more self-motivated about what they want from retirement and what contributions they can make realistically towards that.
"We have to focus on customer outcomes. We hope customers will find this information interesting and this is the beginning of the education process."
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