You pay two different charges.
- A monthly administration charge of £1.75 (£21 a year), which covers the cost of running the Scheme.
- An annual investment charge of 0.3%, which covers the cost of investing your money.
Transaction costs, for buying and selling investments, also impact your savings. These costs are levied by others when investing your savings. These costs are factored into the returns on your savings.
The charges continue to apply if you stop contributing to your pension – for example, because you leave your employer.
You can see the combined effect of the monthly administration charge, annual investment charge and transaction costs over time in our costs and charges booklet.
We won’t take any administration charges if this deduction would result in your pension savings account falling below £100. This will help prevent small amounts of pension savings being eroded by administration fees.
The amount you pay for your pension matters a lot over a lifetime of saving. Download our costs and charges booklet for more examples of the effect of costs and charges on the value of your pension savings over time.