The average annual administration cost of running a pension scheme is £90
per member, according to research by Watson Wyatt.
The survey of 146 pension schemes – covering 4.6 million members – found
that schemes with fewer than 500 members have average annual costs of £123 per
member, compared with just £21 for those with more than 40,000 members. The
average in-house administrative cost for small schemes was found to be £101,
compared with £71 when they are outsourced.
Large schemes have average in-house administrative costs of £36, and cost
£12 less per member per year when the administration is outsourced. www.watsonwyatt.com,
01737 274 265