Typical annual management charge for pension?

louisdog

I have just been made redundant so my group personal pension policy has now come over to me and been made paid up.

I was worried that the AMC would be high on an individual policy but the provider says it's 0.56% pa which sounds quite low to me.

I have googled and am struggling to find information on typical AMCs and also on which providers' funds have performed best.

Can anyone recommend a decent place to start researching this please?

I just want to establish whether I'd be better leaving my fund as is or transferring it.

Thanks!

dunstonh

I was worried that the AMC would be high on an individual policy but the provider says it's 0.56% pa which sounds quite low to me.

1% is the UK benchmark. Anything over 1% typically requires justification (and there can be valid justification). However, anything under 1% is good value.

Can anyone recommend a decent place to start researching this please?

You wont find anything on charges as with group schemes, they are set at a corporate level and negotiated. However, Trustnet is a good place to find fund information. However, not all group/occupational scheme investments will be published for third party reporting companies. In those cases, you need to ask the scheme administrator for investment information.

jamesd

0.56% is quite good but is that for all of the funds available to you? Do you know enough to use other funds?

One thing to ask the provider is whether there is an "active member discount" that causes the charge to increase for people who leave the company. You may have been told the price with active member discount, not the one that would apply when you've left the company. An active member is a current employee of the company. It wouldn't be surprising if there's an increase of up to 0.5% for those who leave.

Linton

louisdog wrote: »

.....

Can anyone recommend a decent place to start researching this please?

I just want to establish whether I'd be better leaving my fund as is or transferring it.

Thanks!

The standard place to find out info on funds is https://www.trustnet.com. That can give you charges and performance over the past 10 years (or more in some cases) and other info.

The figures on charges given will be the standard price list. As Jamesd describes, employers may arrange special deals for their pension schemes.

bigadaj

Linton wrote: »

The standard place to find out info on funds is https://www.trustnet.com. That can give you charges and performance over the past 10 years (or more in some cases) and other info.

The figures on charges given will be the standard price list. As Jamesd describes, employers may arrange special deals for their pension schemes.

Trustnet is great for performance but in my opinion not so good for charges. There are often several different share classes for each fund with different fees and even then they're not representative of actual individual costs due to discounting, group schemes etc.

louisdog

Thanks for the replies, off to do a bit more research on Trustnet.

jimjames

jamesd wrote: »

0.56% is quite good but is that for all of the funds available to you? Do you know enough to use other funds?

One thing to ask the provider is whether there is an "active member discount" that causes the charge to increase for people who leave the company. You may have been told the price with active member discount, not the one that would apply when you've left the company. An active member is a current employee of the company. It wouldn't be surprising if there's an increase of up to 0.5% for those who leave.

Interested to know what the answers are here for AMC amounts.

After the HL announcement this week I checked our company scheme and found that charges a fee of 0.5% pa on top of the fund charges which are generally at the 0.5% - 0.8% level.

Quite surprised as it means my HL SIPP is actually better value with the new pricing at 0.45% plus fund AMC especially with the 0.06% trackers they have mentioned.

dunstonh

jimjames wrote: »

Interested to know what the answers are here for AMC amounts.

After the HL announcement this week I checked our company scheme and found that charges a fee of 0.5% pa on top of the fund charges which are generally at the 0.5% - 0.8% level.

Quite surprised as it means my HL SIPP is actually better value with the new pricing at 0.45% plus fund AMC especially with the 0.06% trackers they have mentioned.

Although compare that with market leading PPPs with 0.35% OFC for inclusive of pension and fund.