PENSION FUND charges are eating away as much as one euro in every six

PENSION FUND charges are eating away as much as one euro in every six (17.4 per cent) of retirement savings in occupational schemes, according to a report on charges published last night.

The figure is dramatically higher for those with individual pension arrangements – such as personal retirement savings accounts (PRSAs) and executive pensions – where the average “loss” is between 21 and 31 per cent.

The figures are on top of the 0.6 per cent annual levy imposed on all private sector pension funds by the Government and will add to concerns of pension fund members ahead of a budget in which Minister for Finance Michael Noonan has already signalled tax reliefs for pension contributions are under review.

The Report on Pension Charges in Ireland 2012 was compiled by the Department of Social Protection, with assistance from the Pensions Board, the Central Bank and PricewaterhouseCoopers. It studied the impact of disclosed and hidden charges on retirement savings.