Hidden costs in private pension funds

CHARGES associated with private pension funds are costing many people up to €100,000 in lost pension earnings, a study undertaken by IFG Corporate Pensions has found.

The study found that a 0.5% cut in the overall management fees could add up to 17% to the final pension fund of a person who switches to the lower cost funds 40 years from retirement.

“Similarly, over a period of 30 years the same reduction in fees will increase their pension fund by almost 13%,” IFG said.