Over a quarter of pension savers believe they do not pay any administration fees for their investments, Alliance Trust Savings has found.

The firm’s nationwide survey of 1,000 people investing in at least one investment product, including a workplace pension, personal pensions, stocks and shares ISA, general investment accounts or an investment funds, found that 27 per were unaware of administration fees.

Of those who said they pay administration fees, more than two thirds, 68 per cent do not know how much it is.

Women and over-45s were found to be least informed on how much they’re paying. Three quarters of each group, 75 per cent and 74 per cent respectively, admitted to not being aware of the costs of their investments.

In comparison, 38 per cent of the surveyed group knew specifically whether they pay a flat fee or a percentage fee for their pension or investment.

Alliance Trust Savings head of platform proposition Sara Wilson commented: “Fees can make a huge difference to the value of a pension pot over time. Whether you pay flat fees or percentage fees for your platform, administration can also impact your investment returns significantly over a twenty-year period.

“Many platforms charge a percentage fee, but the reality is that it does not cost ten times as much to service a £500,000 pension as it does to service a £50,000 one. For people with larger accounts, flat fees can offer excellent value and make a big difference to what you could get back over the longer term.”

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