Pension Transaction Costs for 2023
For our Group Stakeholder Pension plans we provide one default fund (Mixed Portfolio Max 100% Shares), together with 7 other unit linked pension funds to choose from for your contributions.
For our Group Personal Pension plans we provide one unitised with profits fund, together with 7 other unit linked pension funds to choose from for your contributions.
For our Group Flexible Retirement Accounts we provide one default fund (Mixed Portfolio 20-60% Shares), together with 2 other unit linked pension funds to choose from for your contributions.
If you leave your employer's workplace pension scheme, your fund choice and charges remain the same.
All our unit linked funds are actively managed and incur both ongoing charges and trading costs when the fund manager buys and sells shares within the fund. Not all of these costs are incurred every time a security is traded. However, the charges for each of the unit linked funds are listed below:
| Name of Stakeholder pension fund | Ongoing charges* | Transaction costs** |
| Deposit | 0.75% | 0.00% |
| Fixed Interest | 0.75% | 0.00% |
| Index Linked | 0.75% | 0.00% |
| International | 0.75% | 0.01% |
| Mixed Portfolio 40-85% Shares | 0.75% | 0.01% |
| Mixed Portfolio Max 100% Shares | 0.75% | 0.04% |
| Property | 0.75% | 0.07% |
| UK Equity | 0.75% | 0.02% |
Notes to the ongoing charges and transaction costs
*Ongoing charges are taken annually for managing the fund. They include the AMC (annual management charge), as well as operational fund costs such as custody, trading and reporting costs.
**Transaction costs are incurred when trading underlying investments. They can be explicit such as stamp duty tax and regulatory / exchange levies; or they can be implicit e.g. the arrival cost. The arrival cost is the price difference between the valuation of an asset before an order, and the execution price at which it is actually traded.
| Name of pension fund | Ongoing charges* | Transaction costs** |
| Deposit | 0.625% | 0.00% |
| Fixed Interest | 0.625% | 0.00% |
| Index Linked | 0.625% | 0.00% |
| International | 0.795% | 0.01% |
| Mixed Portfolio 40-85% Shares | 0.705% | 0.01% |
| Property | 0.625% | 0.07% |
| UK Equity | 0.625% | 0.02% |
Notes to the ongoing charges and transaction costs
*Ongoing charges are taken annually for managing the fund. They include the AMC (annual management charge), as well as operational fund costs such as custody, trading and reporting costs.
**Transaction costs are incurred when trading underlying investments. They can be explicit such as stamp duty tax and regulatory / exchange levies; or they can be implicit e.g. the arrival cost. The arrival cost is the price difference between the valuation of an asset before an order, and the execution price at which it is actually traded.
| Name of pension fund | Ongoing charges* | Transaction costs** |
| Deposit | 0.50% | 0.00% |
| Fixed Interest | 0.50% | 0.00% |
| Mixed Portfolio 20-60% Shares | 0.65% | 0.01% |
Notes to the ongoing charges and transaction costs
*Ongoing charges are taken annually for managing the fund. They include the AMC (annual management charge), as well as operational fund costs such as custody, trading and reporting costs.
**Transaction costs are incurred when trading underlying investments. They can be explicit such as stamp duty tax and regulatory / exchange levies; or they can be implicit e.g. the arrival cost. The arrival cost is the price difference between the valuation of an asset before an order, and the execution price at which it is actually traded.
The table below is included to give you an idea of the compounding effect of the ongoing charges and transactions costs if, for example, you had taken out a Group Stakeholder Pension Plan and invested in the Mixed Portfolio Max 100% Shares fund.
Projected pension pot in today’s money
| Mixed Portfolio Max 100% Shares Fund | ||
| Years | Before charges + costs deducted | After all charges + costs deducted |
| 1 | £11,400 | £11,300 |
| 3 | £14,400 | £14,100 |
| 5 | £17,500 | £17,000 |
| 10 | £26,100 | £24,600 |
| 15 | £35,800 | £32,800 |
| 20 | £46,700 | £41,800 |
| 25 | £59,000 | £51,500 |
| 30 | £72,800 | £62,000 |
| 35 | £88,500 | £73,400 |
| 40 | £106,000 | £85,800 |
Notes to the projected pension pot illustration:
- Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
- The starting pot size is assumed to be £10,000.
- Inflation is assumed to be 2.5% each year.
- The initial monthly contribution is assumed to be £100.
- Contributions are assumed to increase in line with assumed earnings inflation of 2.5% each year throughout the projection.
- Values are estimates and are not guaranteed. The value of investments can fall and you may get back less than invested.
- The projected growth rate for the Mixed Portfolio Max 100% Shares fund is 5% each year.
- Charges may change.
The table below is included to give you an idea of the compounding effect of the ongoing charges and transactions costs if, for example, you had taken out a Group Stakeholder Pension Plan and invested in the Property Fund.
Projected pension pot in today’s money
| Property Fund | ||
| Years | Before charges + costs deducted | After all charges + costs deducted |
| 1 | £11,400 | £11,300 |
| 3 | £14,400 | £14,100 |
| 5 | £17,500 | £17,000 |
| 10 | £26,100 | £24,500 |
| 15 | £35,800 | £32,700 |
| 20 | £46,700 | £41,600 |
| 25 | £59,000 | £51,200 |
| 30 | £72,800 | £61,700 |
| 35 | £88,500 | £72,900 |
| 40 | £106,000 | £85,100 |
Notes to the projected pension pot illustration:
- Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
- The starting pot size is assumed to be £10,000.
- Inflation is assumed to be 2.5% each year.
- The initial monthly contribution is assumed to be £100.
- Contributions are assumed to increase in line with assumed earnings inflation of 2.5% each year throughout the projection.
- Values are estimates and are not guaranteed. The value of investments can fall and you may get back less than invested.
- The projected growth rate for the Property Fund is 5% each year.
- Charges may change.
The table below is included to give you an idea of the compounding effect of the ongoing charges and transactions costs if, for example, you had taken out a Group Personal Pension Plan and invested in the Property Fund.
Projected pension pot in today’s money
| Property Fund | ||
| Years | Before charges + costs deducted | After all charges + costs deducted |
| 1 | £11,400 | £11,300 |
| 3 | £14,400 | £14,100 |
| 5 | £17,500 | £17,000 |
| 10 | £26,100 | £24,800 |
| 15 | £35,800 | £33,200 |
| 20 | £46,700 | £42,400 |
| 25 | £59,000 | £52,300 |
| 30 | £72,800 | £63,200 |
| 35 | £88,500 | £75,100 |
| 40 | £106,000 | £88,000 |
Notes to the projected pension pot illustration:
- Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
- The starting pot size is assumed to be £10,000.
- Inflation is assumed to be 2.5% each year.
- The initial monthly contribution is assumed to be £100.
- Contributions are assumed to increase in line with assumed earnings inflation of 2.5% each year throughout the projection.
- Values are estimates and are not guaranteed. The value of investments can fall and you may get back less than invested.
- The projected growth rate for the Property Fund is 5% each year.
- Charges may change.
The table below is included to give you an idea of the compounding effect of the ongoing charges and transactions costs if, for example, you had taken out a Group Personal Pension Plan and invested in the International Fund.
Projected pension pot in today’s money
| International Fund | ||
| Years | Before charges + costs deducted | After all charges + costs deducted |
| 1 | £11,400 | £11,300 |
| 3 | £14,400 | £14,100 |
| 5 | £17,500 | £17,000 |
| 10 | £26,100 | £24,600 |
| 15 | £35,800 | £32,800 |
| 20 | £46,700 | £41,700 |
| 25 | £59,000 | £51,400 |
| 30 | £72,800 | £61,800 |
| 35 | £88,500 | £73,200 |
| 40 | £106,000 | £85,500 |
Notes to the projected pension pot illustration:
- Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
- The starting pot size is assumed to be £10,000.
- Inflation is assumed to be 2.5% each year.
- The initial monthly contribution is assumed to be £100.
- Contributions are assumed to increase in line with assumed earnings inflation of 2.5% each year throughout the projection.
- Values are estimates and are not guaranteed. The value of investments can fall and you may get back less than invested.
- The projected growth rate for the International Fund is 5% each year.
- Charges may change.
The table below is included to give you an idea of the compounding effect of the ongoing charges and transactions costs if, for example, you had taken out a Group Flexible Retirement Account and invested in the Mixed Portfolio 20 - 60% Shares fund.
Projected pension pot in today’s money
| Mixed Portfolio 20-60% Shares Fund | ||
| Years | Before charges + costs deducted | After all charges + costs deducted |
| 1 | £1,020 | £1,010 |
| 3 | £1,060 | £1,040 |
| 5 | £1,110 | £1,080 |
| 10 | £1,240 | £1,160 |
| 15 | £1,390 | £1,260 |
| 20 | £1,550 | £1,360 |
| 25 | £1,740 | £1,470 |
| 30 | £1,940 | £1,590 |
| 35 | £2,170 | £1,710 |
| 40 | £2,420 | £1,850 |
Notes to the projected pension pot illustration:
- Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
- The starting pot size is assumed to be £1,000.
- Inflation is assumed to be 2.5% each year.
- No contributions are assumed to be paid.
- Values are estimates and are not guaranteed. The value of investments can fall and you may get back less than invested.
- The projected growth rate for the Mixed Portfolio 20 - 60% Shares fund is 4.8% each year.
- Charges may change.