The Irish government should not focus exclusively on lowering the absolute level of pension charges but rather seek to increase levels of transparency around management fees, the Irish Association of Pension Funds (IAPF) has said.
The IAPF's chief executive Jerry Moriarty said the report highlighted the "worst charges possible" – a sentiment echoed in the submission, which said the government gave a "misleading view" of the state of fees in Ireland. Discussing the headline figure cited by the report, the IAPF said: "To describe this as 'the average charge' in the summary gave a misleading view of the findings of the report, which undermines the good work being done by trustees in obtaining value for their members. It is clear there is considerable scope for improvement, particularly in relation to individual retail products, but this should not overshadow the more positive findings in relation to occupational pension schemes."
The association also cautioned the government against an undue focus on the level of charges, saying it was not the absolute level of fees that was important but rather the value offered. "Increasing the level of transparency and consistency around charges and fees will increase the ability of trustees and individuals to make better informed choices", the IAPF said.
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IAPF-submission to the Department of Social Protection
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