Our pension fees explained

Michelle Gribbin | 3rd of November 2021


Only 16% of UK adults think that they pay annual pension charges*, while more than four out of five (84%*) say that they do not, or don’t know if they pay annual charges. That’s why at Profile Pensions we want to make it clear to customers exactly what they are paying for. We don’t want to hide our fees from our customers, or use confusing jargon to explain what and how we charge.

No hidden costs: a transparent, competitive all-inclusive fee

It's free to join Profile Pensions, which means we won’t charge you anything for transferring your old pensions to us (or for making contributions). You will pay a total, all-inclusive annual fee of between 0.82% and 0.87% depending on the plan we identify as the best option for you. This includes our ongoing advice service where we regularly monitor and review your pension to make sure it's always in the right place for you.

Our ongoing advice service, which we recommend as part of your pension plan, will continuously 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.

Our ongoing advice service is impartial and looks at the funds available from the whole of the market. You will continue to have access to a dedicated pension adviser who you can contact directly if you have any questions about your pension plan, or if you wish they can help facilitate a free transfer of any other old pensions into your plan, find old workplace pensions, set up regular contributions or make a withdrawal from your pension.

Most other pension companies won’t offer a personalised pension plan, impartial, whole of market funds or ongoing review service with a dedicated Pension Adviser. Meaning you could be paying more, but your pension may not be invested in the right place for you throughout your lifetime.

Simply put there are no hidden costs, just a transparent, competitive all-inclusive fee of between 0.82% and 0.87% 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. 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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