The NOW: Pensions member charging structure is designed to be simple, transparent and fair. Our charges cover the administration of your pension savings and any investment management fees associated with investing your money.
As a member of the NOW: Pensions Trust (‘the Scheme), you pay two different charges:
• A monthly administration charge of £1.50, which covers the cost of running the Scheme
• An annual investment charge of 0.3%, which covers the cost of investing your money.
By splitting the charge, costs are spread more equitably across all members. It also makes it easier to understand what you’ll pay for your pension every year.
These charges are the same for all members whether you are contributing to your pension regularly or not.
If you leave your employer or stop contributing to your pension, you can transfer the money in your account to another pension provider at no cost.
This may be more cost-effective, especially if you are leaving a very small pension pot with just a few hundred pounds because the charges continue to apply. If you don’t move your money, the charges could mean that you have nothing left in your fund in a few years’ time.
Transaction costs and charges
With all pension schemes, costs will also be incurred by investment funds when assets are bought, sold, or lent by the fund. These are called ‘transaction costs’. We don’t charge for these separately, but they are factored into the overall investment returns members receive.
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.
You can find out more about the policies and principles that guide our decisions when managing members’ money in our Statement of Investment Principles.