Nest Pension & New Vanguard Charges - Other options?

AlanP_2

Hal17 said:

QrizB said:

engagedandopen said:

£48 per year on £14k is 0.34%.  Add in 0.15% for Vanguard's platform fee.

The £48 is the floor on their platform fee. There's no circumstance where you pay £48 plus 0.15%.

Thank you for confirming that. I assumed that the £4.00 per month was in addition to the Ongoing Charge (OCF) of 0.14% and 0.22% shown against the two funds in my Daughters Vanguard Pension.

It is. Each Vanguard fund has an inbuilt charge, the OCF as you refer to. It is paid within the fund by Vanguard adjusting the unit price to extract their percentage.

In addition there will be a platform charge levied by the company administering the pension on your behalf. 

With the Vanguard platform that charge is 0.15% with a floor of £48 and a ceiling of £365.

Hal17

AlanP_2 said:

Hal17 said:

QrizB said:

engagedandopen said:

£48 per year on £14k is 0.34%.  Add in 0.15% for Vanguard's platform fee.

The £48 is the floor on their platform fee. There's no circumstance where you pay £48 plus 0.15%.

Thank you for confirming that. I assumed that the £4.00 per month was in addition to the Ongoing Charge (OCF) of 0.14% and 0.22% shown against the two funds in my Daughters Vanguard Pension.

It is. Each Vanguard fund has an inbuilt charge, the OCF as you refer to. It is paid within the fund by Vanguard adjusting the unit price to extract their percentage.

In addition there will be a platform charge levied by the company administering the pension on your behalf. 

With the Vanguard platform that charge is 0.15% with a floor of £48 and a ceiling of £365.

Thank you, I fully understand the charges now. Your explanation matches exactly what I just found on the Vanguard site. Time to update my spreadsheet and see where we go. Thanks again.