Pension charge of 1%

aj87cj

I have just leant that I am being charged 1% of the total value of my pension so I pay in £110.00 per month nearly £67.00 is being taken out! as charges if I freeze the pension I will still be charged and end up devaluing my pension, have I been stitched up? what can I do:

dunstonh

I have just leant that I am being charged 1% of the total value of my pension so I pay in £110.00 per month nearly £67.00 is being taken out!

What has your contribution got to do with the annual charge on the value?

if I freeze the pension I will still be charged and end up devaluing my pension,

Of course you will still be charged. Why do you think the charge is devaluing your pension? Do you expect them to run your pension out of love?

have I been stitched up?

No. You just dont understand how it works. You are actually paying less in charges on the investment than you are on a savings account (now that one will get you thinking)

jamesd

aj87cj wrote: »

I have just leant that I am being charged 1% of the total value of my pension so I pay in £110.00 per month nearly £67.00 is being taken out! as charges

£67 a month in total charges is reasonable if it's the charges made by the fund managers. £67 is equivalent to 1% a year on a pension pot of £80,400. If your pot continues to grow you'll eventually be paying more in charges than the new money you're paying in.

But say more about this 1% of charges. How is it being charged? Is it the 1% that the investment funds are charging or is it on top of that in some way? It might not be as reasonable as it seems if it's the fund charges.

There are places that may have lower charges, it depends on exactly which investments you're using and want to use. If you say something about that and the total investment value maybe someone will have a suggestion for a cheaper or better provider than the one you're currently using - which one is that?