BRIDGWATER Senior Citizens' Forum is angry that a report states British savers retire with pension pots worth 50 per cent less than some European counterparts, despite investing the same cash.

David Pitt-Watson, Hermes Fund Managers senior executive, says fees levied by Britain's pensions system are blighting the retirement plans of millions of people, who are left with much less than overseas savers, despite contributing just as much.

This is because of an array of hidden charges in the pensions' system, he said.

The costs of some plans from high street names such as HSBC, Legal and General, and Scottish Widows amount to more than £200,000 over 40 years for someone saving £200 a month.

"Our industry is not performing its function well," said Mr Pitt-Watson, whose company oversees billions of pounds of savings. "It is terribly inefficient."

Someone saving £1,000 a year throughout their working lives could expect to retire on an inflation-protected pension worth £16,080 a year if they did not pay fees.

However, the typical fees levied by British pension funds – which include several in addition to the "annual management charge" familiar to many investors – would reduce the payout to just £9,900 annually.

Forum chairman Phil Sealey said: "This skimming off of funds is not acceptable, and the Government should step in to clean up the pensions industry.

"Millions of British pensioners now rely on private pensions to fund several decades of their lives, because the state pension is so meagre. With the lowest state pension in Europe, which condemns 2.4 million pensioners to living below the poverty line, this adds insult to injury for those saving for their retirement."

The forum's next meeting is on Thursday, September 2, at 10.30am, at Bridgwater Baptist Church Hall. All aged 50 or over are welcome.