The majority (71 per cent) of pension savers do not know what they are paying in pension fees or did not realise they were paying fees at all, research from Wealthify has found.

To combat this, Wealthify introduced tiered pension fees for its self-invested personal pension (SIPP), allowing customers to access a diversified SIPP at a competitive price.

The management fee will be 0.6 per cent for the first £100,000, reducing to 0.3 per cent on balances thereafter, and covers ongoing management by Wealthify’s team of investment experts.

The reduced 0.3 per cent fee on the portion of a pension over £100,000 is available to new and existing customers on Wealthify’s website and app.

Wealthify said that SIPPs with ongoing management are typically more expensive, with cheaper options either requiring customers to research, select and manage their own investments, or use a fixed asset allocation with “very little” ongoing investment management.

Commenting on the offering, Wealthify CEO, Richard Ambrose, said: “Too many people are unaware of what they are paying in fees. It’s our duty as pension providers to make this clear.

“Fees are charged as a percentage of the pension pot, so the more you put in, the more fees will eat into your retirement savings.

“Whatever stage people are at with their pensions, I hope Wealthify’s new tiering inspires them to review their fees and vote with their feet so that they aren’t paying more than they need to.”

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