Pension providers should be more transparent over their charges to help consumers compare schemes, according to PricewaterhouseCoopers (PwC).

As part of recommendations made to the Work and Pensions Committee, the global professional services firm has called for companies to provide a statement of all the charges incurred in a scheme.

These would include the total investment charges for different funds and a complete breakdown of any hidden costs to help boost uptake of pensions.

Peter McDonald, PwC chief actuary and pensions partner, claimed that many consumers currently struggle to make direct comparisons between different pension products and providers.

He said: "A brief statement of total scheme charges, outlining the total investment charges for different funds and then breaking these down to reveal any 'hidden' costs, would make a big difference in building confidence with this next generation which will pay massive dividends.

"This statement could possibly be made a statutory requirement in the future."

A recent study by PwC revealed that returns from Defined Contribution pensions had fallen by 30 per cent over the past three years.