The study, entitled Value for money in DC workplace pensions, stated: “Although costs and transparency of costs are important, consideration of value for money should also include elements such as administration, communication with members, and governance.”

Commissioned by Standard Life, the report said: “In conclusion, it may not be possible for Independent Governance Committees and trustees to attain the best outcomes for all members. These bodies may be required to make decisions that are broadly in members’ best interests. It is important to consider all determinants of value for money rather than narrowly focusing on charges.

“Three outcomes are likely to be seen as positive indicators of value for money by members. They are pension pot value, the security of the pot, and the level of trust in the scheme.

“In practice, good governance can be the lynchpin for driving better value for money, as it can communicate the importance of contribution rates and set the right investment strategy for the membership. It can also ensure effective administration and appropriate member communications, as well as challenging and negotiating charge levels.

“Much debate has so far focused on value for money during accumulation. However, it is important that members get the best value for money in retirement as well.”

Melissa Echalier, PPI senior policy researcher, said: “Those responsible for pension schemes need to consider how contribution levels, governance and charges interact in terms of identifying value for money for their members.

“It may not be possible for Independent Governance Committees and trustees to ensure the best member outcomes for all members; these bodies may simply need to make decisions that are broadly in members’ best interests.”

Nathan Long, senior pension analyst, at Hargreaves Lansdown, said: “Focusing solely on cost rather than value has been an unwelcome side effect of the otherwise excellent introduction of a charge cap to workplace pensions.

“The research by the Pension Policy Institute highlights important factors in growing a larger pension pot. In particular, paying more in is a great way to finish work with a bigger pension. Schemes that can encourage members to take action are likely to have retirees with bigger pension pots.

“Low cost pension investments alone do not deliver the greatest returns. The most skilled fund managers can deliver superior returns even after higher charges. It is important for workplace pensions to enable members to choose these skilful managers to enhance their pension pots.

“Trust and security remain very important to members. It is a reminder that the failure of a workplace pension could have nasty repercussions and do lasting damage to the pension brand which is being somewhat revitalised.”