Pension fund fee question

simon1290

Hi,

My pension is currently invested in this fund:
Scot Eq BlackRock Aquila 75/25 Equity & Bond Index Lifestyle
( trustnet.com/factsheets/p/00kg/scot-eq-blackrock-aquila-7525-equity--bond-index-lifestyle-arc-pn )

The annual management fee is only 0.05%, this seems very low to me. Am I missing something or is this fund really that cheap? Do they make it up with platform fees?

Thanks!

dunstonh

You are missing the platform charge.

For example, for us, the 0-£100k band is 0.29% for their platform. That brings total charge to 0.34%

simon1290

Thanks dunstonh, my platform charge is 0.44%. Do you have to use the platform chosen by your employer?

Linton

simon1290 wrote: »

Thanks dunstonh, my platform charge is 0.44%. Do you have to use the platform chosen by your employer?

Generally yes, for a large employer the administration of paying contributions into a wide range of different pension schemes/providers could be horrendous. Though some small companies may be prepared to do it.

You may find that your employer has agreed lower charge terms with the chosen provider than would be available to you as an individual.

dunstonh

simon1290 wrote: »

Thanks dunstonh, my platform charge is 0.44%. Do you have to use the platform chosen by your employer?

As mentioned above, yes you do. However, dont be too concerned. 0.49% all in is still a good charge. And you may well find a repricing coming in the next 12 months.