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UK pensions charge cap is 'encouraging passive'

Smaller DC plans are likely to follow their larger cousins in opting for cheaper funds, consultants say

UK pensions charge cap is 'encouraging passive'

The UK government's charge cap for pension funds, introduced earlier this year, is driving more of savers' money toward lower-cost funds and index investments, according to consultants — particularly among smaller pension plans.

The government introduced the cap at 0.75% of managed assets per year in April 2015, alongside new rules for checking and reporting on fees for those in charge of pension plans.

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