Pension reforms to bring higher costs

The UK government’s pension plans will see increased investment in private markets, with the country’s largest providers committing 10% of their assets to them. However, whilst aiming to boost returns, it has also opened the door for asset managers to charge higher fees for their advice. Exposure to these markets may boost savings, but their complex and unfamiliar nature means that guidance is needed. These reforms will also see more savings directed into private markets via LTAFs. However, in addition to increased fees, there are also risk and transparency concerns, particularly for auto-enrolled...