Do you think pension tranfers need to be quicker, smoother and cheaper?

dunstonh

I suspect not. I would hazard a guess that the charges won't be quoted in that way, they are being quoted conventionally. However, I suspect the OP has derived the charges from a KFI and compared them to the projected gain.

I did think that the effects of charges column may be to do with it. However, they are not the actual charges and of course that fails to take into account inflation. Charges levied in say 20 years on a fund value of £x in 20 years do not relate to that same monetary amount today. i.e. £20,000 in 20 years time will be like £8450 today.

It's effectively a value-add methodology - saying how much of your potential gain you'd be giving away.

it has to be in the correct context and it appears the context is being taken incorrectly here.

If Tesco didnt have a profit margin built into their pricing then if that amount was taken and then invested at x% a year then I would be £xx better off. Its information but its not useful information if you dont read and understand it correctly.

jamesd

I suspect it's more like observing that the anticipated investment return was 5% and the managers wanted to take 1%, 20% of the total expected returns, for their services. 20% looks far more frightening than 1% and is a good deal more interesting to a person planning for income, since it shows the effect on what they care about.

sandsy

Jamesd, you expressed it so much more succinctly than I did!