The vast majority of UK pension savers (83 per cent) have “no idea” what they’re paying in pension fees in either pound or percentage terms, according to research from Interactive Investor, which has prompted calls for providers to be more transparent.

Commenting on the findings, the firm warned that a lack of knowledge left “millions of savers” vulnerable to poor value and reduced retirement outcomes, as they might be unwittingly paying over the odds for their pensions.

“Every pound you pay in fees that doesn’t translate to a better outcome is a pound less for you to enjoy in your golden years,” explained Interactive Investor pensions expert, Craig Rickman.

“The tricky part for savers is that, while portability of pensions means that you can switch to somewhere else that provides better value, many don’t know how much their current providers charge.

“They have no idea whether their existing pensions offer fair value,” he added, claiming that it was “easy to see why” savers were still unaware of their pension fees.

“The cost of pension plans varies widely – not just in size, but also in how they’re applied. From account fees and fund charges, to trading and exit fees, it can be difficult for consumers to understand the total cost," he continued.

“Account fees are typically charged as a percentage, based on the size of your savings, often tiered with larger savings attracting lower rates. This can be appealing if you’re at the start of your savings journey and your pot is relatively small, but as your fund grows over time, your fees follow suit, eating away at your eventual retirement pot.

“Overpaying in fees can take a serious toll on people’s future retirement pots, especially when the fees are deducted in ways that can go unnoticed. Many pension savers are worried they won’t have enough in retirement – and sadly, the data shows that if action isn’t taken, they could be right."

“There are just too many hoops you have to jump through to be able to find out what you’re paying in pension fees, overall. People are left without the full picture at a time when they need clarity more than ever,” warned Rickman.

Echoing this, Interactive Investor senior manager, Camilla Esmund, said it was time for providers to be “crystal clear” about what they charged and how this impacted their customers.

“We believe value should grow with your savings, not erode them. Transparency is key to better retirement outcomes,” she concluded.

The survey, conducted by Opinium between February and April 2025, used a nationally representative sample of 5,000 UK adults.

---