An astonishing £180billion of personal pensions are languishing at the mercy of high management fees and savers are being urged to check whether they are paying too much. The average 55-year-old saver could boost their pension by around £8,500 by switching to a cheaper scheme as new research from independent pension professionals Profile Financial shows that too many are leaving money in “lazy pension pots” and need to put their funds to work. It said the average pension management fee is 1.47 per cent a year, rising to 1.85 per cent for those over 55.

Independent pensions expert Billy Burrows said: “Savers with the oldest pensions are at most risk because these schemes typically have higher charges.” Many people overlook these charges, which seem quite small but they add up because the money is deducted year after year.

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