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Traders

hidden charges, leaving pensioners and savers worse, the Treasury warned

traders are well paid city retirees and depriving them of saving thousands of pounds through the high administrative costs that are often hidden, as indicated by filtering provided by the consultants of the Treasury. Expenses are extensive and are so steep that investors may find that get less in retirement than they have invested in savings accounts and pension during his life.

If the size of the charges were to be widely known in the UK "savings culture are fragile and can suffer permanent damage," according to the opinion submitted to the Treasury last month.

The damning conclusions in a time of growing concern that millions of Britons do not have enough money for their old age. It also raises new questions about the Prime Minister's decision to oppose a new EU treaty calls for better protection for the city.

, David Cameron has insisted that the financial sector is a vital national interest, however, the consultants put into the Treasury said that the accusations often unnecessary suffering created by traders potential for economic growth.

A source who saw the presentation said

Observer

concluded that fund managers had "lost sight" of their clients and the government had to act. The presentation suggests that the country's pensions black hole - unfunded pension liabilities by public and private -. It can fade over time if the costs could be reduced, said a source

"They are so high that the industry is actually the destruction of value for investors in the UK at least as fast as the stock market can create," said the source. "The message government is that you have to save for retirement, but with the amount that will not be worth it if these costs are covered. And the higher cost of all expenses are staff salaries and bonuses. "

costs even publicly disclose that the funds in the UK are in most cases more expensive to invest in funds that, in France, Germany and the United States, he said .

fund manager makes explicit capital charge on average about 1.5% per annum of the amount invested for their services, but the hidden additional costs of 0.3% average annual transaction costs cut by 1.4% more than the investment. The situation is worsening, according to the analysis, which found that costs increased 9% in the last decade. The filing said: "If the trend of diminishing returns and rising costs continues, we may soon expect a negative return on average."

During the presentation, which was then shared with the Department for Work and Pensions, the point was illustrated by the example of a protector that is £ 70 000 in contributions between 1994 and 2009, only to see the £ 46 000 for the benefit of the appreciation of the FTSE 100 to be completely consumed by the financial services industry.

experts behind the board, Dr. Christopher Sier, a former consultant to investment managers, and David Norman, a former head of Credit Suisse Asset Management (UK) revealed that the two books , $ 1 trillion in assets under management in the UK attract a cost of £ 67.2bn a year - equivalent to 3.2% - with the rising cost of salaries and bonuses for traders and managers Funds

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