Royal London Pension Funds

dunstonh

Cottage_Economy wrote: »

It wasn't auto-enrollment three years ago - I was asked if I wanted the pension or not, i opted to have it. Free money and all that.

The pension statement and illustration I get every year does say 1%. If there is a charges cap it isn't documented on any paperwork I see or on my online account.

Whilst the plan may pre-date auto-enrolment rules, once the firm hits its staging point, it has to have in place an auto enrolment scheme or better equivalent. This has seen many old Group Personal Pensions have their terms changed to meet the AE criteria or the old group scheme closed and a new AE scheme opened in its place.

It may be worth an email to the adviser for the plan just asking if the scheme as auto-enrolment compliant and if the fund charges have been reduced to 0.75% following the charges cap that was introduced on 6th April 2015.

Just today, the Govt has reconfirmed the cap until another review in 2020.

The cap applies only to the default funds (that usually means the internal own brand funds - not externally managed funds controlled by another fund house).