British savers are possibly losing significant sums of money by not actively managing their pension fees and failing to seek better interest rates on their savings, financial experts caution.

According to investment platform interactive Investor,a significant majority,over 80 per cent,of savers are not aware of the fees they are paying on their pensions. Simultaneously, savings app Spring reports that 80 per cent of current accounts in the UK with balances exceeding £10,000 are earning no interest.

Craig Rickman, personal finance editor at Interactive Investor, warned that individuals who do not switch pension platforms when faced with high management costs could face financial disadvantages as they approach retirement.

“It’s incredibly concerning that the majority of savers are still in the dark about what they’re paying in pension fees,” he said.

Rickman added, “The tricky part for savers is that while portability of pensions means 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.”

the complexity of pension plans, which often include various account and exit fees, makes it difficult for consumers to understand the true cost. Interactive Investor notes that as investment amounts increase, so do the fees, which can erode savings over time.

Spring also highlights that many consumers are missing out on potential interest payments by keeping their money in current accounts instead of transferring it to savings accounts, such as Individual Savings Accounts (Isas).

“We see too many savers leaving their money in poor paying accounts with their current account provider,” said Derek Sprawling,managing director of savings at Spring.

Sprawling stated, “Many are sitting on sizeable balances that could be earning them a great rate of return elsewhere. current accounts are not designed as savings vehicles.”

Some consumers are hesitant to move their money to savings accounts due to concerns about losing easy access to their funds, notably if the accounts have withdrawal restrictions, according to Spring.

Savings accounts with higher interest rates often come with limited access to funds and penalties for withdrawals.

Sprawling added,”While many like the idea of keeping some money in their current account for emergencies,having a balance in a no or low interest paying account risks that cash asset not being considered as an asset at all.”

Despite 45 per cent of investors indicating a willingness to switch platforms for lower fees, only 7 per cent actually check the costs before opening a new account, according to Interactive Investor.

Taking Control of Your Investments

“It’s clear we have glaring pension engagement gaps in the UK – but these blind spots around fees are particularly worrying.”

Camilla Esmund, senior manager, stated, “It’s clear we have glaring pension engagement gaps in the UK – but these blind spots around fees are particularly worrying. Even though we can’t control the market, you can control how much you pay to invest.”

Esmund added, “This issue is broader than pensions alone. Unfortunately, it is not always easy for consumers to clearly see the costs associated with their investments – not least the platform charge.But it is indeed well worth consumers checking how much they are paying.”