Our pension fees explained

Michelle Gribbin | 31st of May 2023


Our pension fees explained

The majority of adults in the UK (84%*) say that they don’t, or don’t know, if they pay annual pension charges, does this sound familiar? As well as making sure you have the best pension for you, at Profile Pensions we also want to make sure you know exactly what pension fees you’re paying. We’ll never hide our fees and we’ll always give a jargon-free explanation to help you take control of your pension.

Transparent, competitive, all-inclusive pension fees

It's free to join Profile Pensions, which means we won’t charge you anything for transferring old pensions you know about to us or for making pension contributions. If you need help finding your old pensions or if you want us to check for any benefits, guarantees and penalties, then we’ll charge a simple one-off fee of 1% of the pension value (taken from your pension when you transfer).

You’ll pay a total, all-inclusive annual fee of between 0.82% and 0.86% depending on the plan we identify as the best option for you. This includes our ongoing service where we regularly monitor and review your pension to make sure it's always in the right place for you.

Our ongoing service will continue to monitor and review your pension and its performance. Where appropriate we might recommend changes to how your pension is invested. This could be based on a change in your attitude to risk or because we identify better funds for you.

We’re impartial and look at the funds available from the whole of the market. You’ll continue to have access to a dedicated Pension Adviser who you can contact directly if you have any questions about your pension plan, or need help to set up regular contributions or make a withdrawal from your pension.

Other pension companies may not offer a personalised pension plan, ongoing service with a dedicated Pension Adviser or impartial, whole of market funds. Meaning you could be paying more for a service that doesn’t compare and a pension that isn’t invested in the best place for you.

Simply put there are no hidden costs, just a transparent, competitive all-inclusive fee of between 0.82% and 0.86% per annum once you transfer a pension to us or start a new pension with regular contributions.

The impact of pension fees on your savings

Pension fees can have a bigger impact on your pension pot than you think, especially over long periods of time. A very small percentage change in your pension charges can have a huge impact on the size of your pension when you retire. Some people’s fees may be so high that it could be reducing the size of their pension!

Let’s use this example to show what impact pension charges can have on your pension pot; a 40 year old currently has £25k saved in their pension pot. If they aim to retire and draw from their pension at the age of 67, with 5% annual growth and a 1.5% annual pension management charge, their pension pot could be worth £64k. Exactly the same pension pot with a 1% annual management charge could be worth £73k. That small 0.5% difference could mean an extra £9k in your pension!

Capital at risk. Past performance is not a guide to future performance. This does not constitute personal advice. Figures used are for illustration purposes only and actual growth rates may be higher or lower than the figures stated.

*YouGov on behalf of Profile Pensions. Total sample size was 2096 adults (October 2019)

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