Pension Charges

Pat38493

I have asked similar questions before but I'm still a bit confused about pension charges.

Looking through all the documents on one of my pensions (with Aegon), the SIPP illustration quotes charges of
Product Charges - 0.25%
Fund AMC - 0.2%

On the most recent fund factsheet for the fund it's invested in, downloaded directly from my login, it says that the fund charge is 0.22% and "This is on top of any product or adviser charge you pay and includes a fixed management fee plus expenses that vary with the day to day costs.  The fund charges may differ with Retireready or AOR"

So is the one on the factsheet the same as the AMC, so I should assume that my company negotiated an 0.02% discount on the fund AMC?

Therefore my total charges are 0.45% (plus a very small variable amount)?

Or are my charges 0.25% plus 0.2% plus 0.22% = 0.67%?

Then we come to my Aviva pension.  On the original documents when the scheme was transferred in by my company it said the charges were 0.34%.

On the latest fund factsheet it also says that it assumes charges of 0.49% plus 0.04%variable. (generic?)

On the latest pension statement it quotes and AMC of 0.34%.

So does this mean on my Aviva scheme I am paying 0.34% plus 0.53% = 0.87% or is it just the 0.34% plus 0.04%?

In both cases, when I look at all the transactional views on their websites and the statement, the only charges I can actually see itemised correspond roughly to about 0.25% of charges or so for the Aegon and 0.34% for the Aviva, so if the other charges are happening are they "hidden" in the fund unit costs so I will never see them itemised on any statement?

The documents seem to give the impression that with the Aviva one the AMC and product fee are combined and linked so there is just one %?  Is this possible or does this never happen?

If I am really paying 0.87% on my Aviva, that's bad right and I should transfer out? 

The Aegon one I don't have a lot of choise as it's my employer sheme.

dunstonh

So is the one on the factsheet the same as the AMC, so I should assume that my company negotiated an 0.02% discount on the fund AMC?

Factsheets show the default.  They don't show what you are paying unless you are on default.

Also remember that transactional charges are synthetical and not real.  So, you won't visibly see those.

The documents seem to give the impression that with the Aviva one the AMC and product fee are combined and linked so there is just one %?  Is this possible or does this never happen?

mono charged pensions were the norm between late 90s to around 2012.   You still got some today although they are less common.

If I am really paying 0.87% on my Aviva, that's bad right and I should transfer out? 

It sounds like you are getting 0.34%.  (ignoring the transaction charges figure)