NOW pension eye opener

colmel16

Just recieved my pension statement from NOW . I was auto enrolled for 1 year in 2017 and was sold on the free money from employer tagline. My contributions were £77.69 which was matched by my employer so a total of £155.38. After investment increases and costs my pot stands at £90. Due to costs i estimate that in 5 years there will be nothing left for retirement. How can they justify £18 charges on small amount pensions especially when after the next 4 years their charges will equate to 100% of the fund.

Albermarle

The pensions company does not work for free and charging £18 pa does not seem at all excessive.
Pensions charging is not geared around such tiny pots, and the best thing to do would be to transfer the £90 into your current pension.

dunstonh

After investment increases and costs my pot stands at £90.

There is no way a gross contribution of £155.38 has reduced to £90.   So, there is an error somewhere.

When you left employment, was there a clawback of pension contributions due to overpayment?

How can they justify £18 charges on small amount pensions especially when after the next 4 years their charges will equate to 100% of the fund.

Who is charging £18?   Now Pensions are 0.50% p.a..  On £155.38 that is 78pence a year.

triplea35

dunstonh said:

Who is charging £18?   Now Pensions are 0.50% p.a..  On £155.38 that is 78pence a year.

As a member of the NOW: Pensions Trust (‘the Scheme), you pay two different charges:

• A monthly administration charge of £1.50, which covers the cost of running the Scheme
• An annual investment charge of 0.3%, which covers the cost of investing your money.

dunstonh

triplea35 said:

dunstonh said:

Who is charging £18?   Now Pensions are 0.50% p.a..  On £155.38 that is 78pence a year.

As a member of the NOW: Pensions Trust (‘the Scheme), you pay two different charges:

• A monthly administration charge of £1.50, which covers the cost of running the Scheme
• An annual investment charge of 0.3%, which covers the cost of investing your money.

Ahh, I was thinking of the other one.  The Peoples Pension.   Thanks.

hugheskevi

colmel16 said:

How can they justify £18 charges on small amount pensions especially when after the next 4 years their charges will equate to 100% of the fund.

DWP are reviewing default fund charging, part of which involves:

We will review whether the level of the charge cap should change; the extent to which transaction costs and other costs associated with life assurance products should be included in the cap; fees structures and in particular, how members subject to charging structures which include a flat fee element are protected from excessive charges;

knack92

Transfer it before its eaten by charges. I went through the process to do this recently but the value was lower than the minimum my current pension provider would accept so going to cut my losses on that.

penners324

knack92 said:

Transfer it before its eaten by charges. I went through the process to do this recently but the value was lower than the minimum my current pension provider would accept so going to cut my losses on that.

Open a pension with PensionBee and move it?