Some pension savers could be thousands of pounds worse off if they fail to shift older pots into ones offering better value for money, the IFS (Institute for Fiscal Studies) has warned.
Many working age people have pension pots that they are no longer actively contributing to and there are concerns that these pots could provide declining value for money over time if savers do not engage with them.
The research looked at defined contribution (DC) pension pots which people were no longer contributing into but were yet to start drawing money out of. It found that many held by a sample of people aged in their 50s are in schemes with charges that are high compared with current market standards.
