Understanding your annual management charge

Find out what our annual management charge covers and how our savings reward could help your pension grow.

What is an annual management charge (AMC)?

Every pension provider charges a fee for looking after your pension savings.

This is called an annual management charge, or AMC. It covers the cost of managing your pension, including investing your savings, administration and customer service. The fee is usually a small percentage of your pension and is taken directly from your savings once a year.

How much is People’s Pension’s AMC?

Pensions can feel complicated, so we keep our fees simple and transparent, helping you see what you’re paying.

Your AMC is taken each year and includes:

A 0.5% management charge on the value of your pension.
A £6.50 annual charge to cover the cost of administering your pension.

What is the savings reward?

The savings reward is how we give money back to our members. If you’re saving more than £3,000 with us, we add a monthly savings reward directly into your pension.

Each month, we return almost £3m* in savings rewards to our members’ pensions. You’ll see your savings reward in the ‘Transactions’ section of your online account. This might appear as a ‘rebate’.

* _{The average monthly amount given back to members was £2,903,689 in April and May 2025.}

Savings reward breakdown

Understand more about the savings reward.

As your pension grow, your savings reward increases.

Here’s how it works:

Up to £3,000, there’s no savings reward
Over £3,000 and up to £10,000, we’ll give back 0.05%
Over £10,000 and up to £25,000, we’ll give back 0.15%
Over £25,000 and up to £50,000, we’ll give back 0.25%
Over £50,000, we’ll give back 0.3%

This means the more you save, the lower your overall charges. It may seem small, but it can really add up over time.

For example, over 40 years, assuming you contribute 8% of your salary each year, your salary increases by 3% per annum and your investments grow by 5% annually:

With a £25,000 salary, your savings reward could reach £11,753
With a £35,000 salary, it could reach £17,283

We add the savings reward to your pension by buying more units in the funds you’re invested in. If you have more than one investment fund, we’ll buy units in each one based on their current value, so everything stays in proportion. You can also combine pensions to increase your savings reward even further.

If you take your money out, future savings rewards will depend on how much you have left. As long as your balance stays above £3,000, you’ll keep receiving a savings reward.

How does the AMC work?

We’re committed to offering a fair deal to our members. That’s why we’re transparent about our fees, with no hidden costs or surprises.

AMC breakdown

Here’s how our annual management charge breaks down:

The management charge is 0.5% of your pension savings. That’s 50 pence a year for every £100 in your pension. We take this automatically through a reduction in the unit price of your funds. *

Some providers charge you more for moving your savings between funds. We don’t. This charge stays the same, regardless of the funds you’re invested in.

* _{Each investment fund is split into units. When you pay into a pension, your money buys units, and their value goes up or down depending on how the fund’s investments perform. If the investments grow, your units increase in value – helping your pension grow too.}

The £6.50 annual charge is taken at the end of the scheme year, which runs from 1 April to 31 March.

We don’t take this charge:

From flexi-access drawdown accounts – only from your main pension savings
From pensions worth less than £106.50
If you leave People’s Pension before the annual charge is taken

Why we charge an AMC

Your annual management charge helps us provide a high-quality service for our members, including:

Expert investment management, focused on helping your savings grow.
Friendly UK-based telephone support team who are always on hand to help with your questions.
Strong scheme governance. Our independent Trustee makes sure our members’ interests stay at the heart of what we do.
Easy access to your online account, app and helpful tools to help you keep track of your money, including calculators.
Everyday administrative costs, including producing your annual statements.

Our price promise

We like to keep things fair and simple. That’s why if you transfer other pension savings in, or rejoin us in the future, you’ll pay the lowest available management charge rate you’ve ever had with us.

For example

If you were charged a rate of 0.05% with us, and rejoined our pension scheme with another employer on a higher rate, we’d still give you the better rate. Not many pension providers offer this price promise.