Rip-off fees will wipe 27pc off new 'flexible' pensions, savers told "If people think annuities were poor value, that could be nothing compared to the cost of flexible pension plans next April," he said. Sensible people who are trying to make their pension last are the most at risk from high charges, as over a 20-year horizon, large sums could be removed from their funds. The type of retirement plans pension companies have said they will offer next April are called "flexible drawdown" policies. Research by The Telegraph found firms would typically charge more than £300 to set up this type of plan, where the money stayed invested in the stock market as customers made withdrawals. Savers faced £400 a year in administration fees, with some companies intending to charge £30 for every "unplanned" withdrawal. Customers would also lose around one per cent of their fund each year to investment management fees. As a result, the plans would work out relatively costly for savers with smaller or subsidiary pension pots. Figures calculated by the House of Commons Library, an impartial research service for MPs, found charges would wipe 27 per cent off the typical fund invested in the plans throughout retirement. The data was requested by the Labour Party, which has asked Prof Blake to undertake further investigative work. The House of Commons Library said its calculations corresponded to someone with a pot worth £30,000. Experts urged savers who planned to use their pensions flexibly from next April to "shop around" for the best deals. Alan Higham, director of pension company Fidelity, said: "Savers will need to be extremely careful because it will be difficult to spot bad value on these type of "bank account" products, as there are hundreds of different charges to compare." The Pensions Institute at Cass Business school is undertaking its Independent Review of Retirement Income to establish how to increase the size of personal pensions in Britain. Prof Blake said: "We are trying to identify some of the risks that savers face in securing a decent retirement, and the fees are part of that."