Our pension charges for your clients
Learn about our charges and how members can reduce them.
How do we charge members?
We believe everyone deserves a fair deal on their pension. That’s why our charging structure is low cost, fair and transparent – with smart ways for members to save even more.
The annual management charge (AMC) has just two elements: a fixed yearly charge and an ongoing management charge.
Our savings reward (rebate) and best price guarantee can help members keep more of their money working for them.
No set-up charge for employers
By the way, there’s no charge for an employer setting up a workplace pension for the first time through a financial adviser or other authorised business adviser. Once their account is created, there are no ongoing fees for the employer either. If a pension scheme is set up without an adviser, there’s a one-off charge of £500 + VAT.
Pension charges and savings
Our charging structure stays the same. It doesn’t matter if a member is contributing or not, what fund they’re investing in, or how much is in their pension.
Member annual management charge (AMC)
The AMC is made up of:
- A management fee up to 0.5%. (that’s 50 pence a year for every £100 in the member’s pension). We take this incrementally throughout the year. This is through a reduction in the unit price of the fund(s) that the member is invested in.
- A £6.50 yearly charge. We deduct this by the end of the year (1 April to 31 March).
Our savings reward lowers the management charge as members add more to their pension. It reduces the management charge from between 0.05% and 0.3%, based on the value of the pension, starting at savings of over £3,000.
With our best price guarantee, if a member re-joins our pension scheme or transfers in other pensions, we combine these savings into one pension and apply the lowest available rate they’ve ever had with us. Not many other pension providers offer this.
When assessing a scheme profile with more complex needs, we may propose a management charge lower than 0.5%. With us, every member gets a fair deal.
See the savings reward effect
Easily work out the benefits of our savings reward on an individual’s management charge using the charge calculator on the member annual management charge page.
Across a whole scheme, our savings reward can mean the AMC becomes significantly lower over time.
Other considerations
Transaction costs
Transaction costs are incurred by investment funds when assets are bought, sold or lent. This includes things like brokerage fees, stamp duty and foreign exchange levies. These aren’t charges made by us, but they affect net investment returns.
See detailed transaction cost information in our latest Annual Report. LINK You can also view more reports and statements covering transaction costs in our pension performance, reports and policies page.
Read more about transaction costs.
Facilitated adviser charging
Facilitated adviser charging lets members use money from their pension to cover the cost of seeking financial advice.
Learn more about facilitated adviser charging.
