Pension charges: what the Government's delay could cost Gina Miller, founder of the True & Fair Campaign that aims to highlight and expose high charges, said: "It is shameful that pension companies have successfully lobbied to have caps on charges kicked down the road for a year." The proposed cap, which is likely to mean the provider can take no more than 0.75pc of savers' pension pots per year, would undercut many existing charges which can be twice that figure or more. Some older schemes charge well above 2pc. But calculations suggest the delay in introducing the cap will be less important than the level at which it is set - combined with any other measures the Goverment takes to limit costs to savers. The graph above shows the impact on a pension pot of almost £250,000 (which today would buy a healthy 65 year-old a retirement income of £14,000 per year) of a 1.5pc or 2.5pc charge over a working life. The graph below shows the impact, over different time frames, of a range of charges applied to savings of a typical employee contributing over several decades. The difference in the total pot saved, over the course of a 40-year working life, between a scheme charging 0.5pc and one charging 1.5pc, works out at approximately £50,000. The level of the cap has proved controversial with many saying it is not low enough. Some providers have already demonstrated that they can offer arrangements with lower fees. When challenged on this point at a pensions function earlier this week, Mr Webb said the precise level of the cap was about "striking a balance" between savers' interests and the need for providers to "want to play." He said: "We need there to be enough providers wanting to compete." He also said he was aware that some providers would comply with the cap by reducing their overall annual fee, but would then levy other, additional costs onto either savers or their employers - effectively reducing the intended benefit of the cap. What is your experience of pensions? Email money@telegraph.co.uk Put a question to our pensions experts. Sipps: How to retire early on a DIY pension