Our charging structure is designed to be simple, transparent and fair. Our charges cover administration for your pension savings, management fees for investing your money and the cost of buying and selling investments
All members of the NOW: Pensions Trust (‘the Scheme) pay two 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% of the value of your savings. This covers the cost of investing your money and it doesn’t change.
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.
You can see the combined effect of the annual investment charge, monthly administration charge and transaction costs over time in our costs and charges booklet.
These charges are the same for all members, whether you’re:
- an active member contributing to your pension regularly, or
- a deferred member – you’ve stopped contributing but still have pension savings in the Scheme
We believe splitting the charges in this way spreads the costs fairly across all members. It also makes it easier to understand what you’ll pay for your pension every year.
Monthly administration charge
This is the charge we make for running the Scheme and it costs you £1.75 each month (£21 a year).
Charging limit
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 annual investment charge of 0.3% will remain the same for all members. This is one of the lowest charges in the industry.
Annual investment charge
This is for investing the money in the Scheme and costs 0.3% of the value of your pension savings each year.
Here’s how this works for different amounts of pension savings.
| Total pension savings before investment charge | Charge in a year | Total savings after investment charge |
| £500 | £1.50 | £498.50 |
| £1,000 | £3 | £997 |
| £2,500 | £7.50 | £2492.50 |
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.