Dive in, pooling can pay its way

Overthrow the fiefdoms in the pensions community and replace them with cost-efficient centralised vehicles

One of the core recommendations of Lord Turner's report on UK pension provision was that the government should encourage individuals to make savings through a state-sponsored pooling vehicle.

He suggested this approach could reduce costs to 30 basis points, and manager fees to 10, against the 1.5%-plus charged by private pension plans. It would also improve access to the kind of investment techniques individuals could never afford on their own, still less understand.

WSJ Logo