There’s only one charge, and one type of cost, which affect our members…
Charges and transaction costs
|Investment fund||Impact on returns|
|Global Investments (up to 85% shares) Fund*||-0.004%|
|Global Investments (up to 100% shares) Fund||-0.01%|
|Global Investments (up to 60% shares) Fund||0%|
*These are the component parts of the default ‘balanced’ investment profile.
|Years in scheme||Pot value before costs and charge||Pot value after costs and charge deducted|
The assumed growth rate for the ‘balanced’ investment profile is made up of the Global Investment (up to 85% shares) Fund at a 4.5% growth rate, gradually switching into the Pre-Retirement Fund at a 3% growth rate in the last 15 years.
99% of the membership are in the balanced lifestyle profile as illustrated above.
- Projected pension pot values are shown in today’s terms, and don’t need to be reduced further for the effect of future inflation.
- Values are estimates and not guaranteed.
- All assumed growth rates include the effects of inflation.
- Inflation is assumed to be 2.5% each year.
- Starting pot size is assumed to be £1,500 (average pot size of active member of the Scheme was £1,370 at 31 March 2019).
- Contributions are assumed to be £90 gross per month from age 22 and increase each year in line with inflation (average monthly contribution of active member was £87 gross at 31 March 2019).
- The costs and charge considered in these projections include transaction costs and the 0.5% management charge.
- Where transaction costs are negative for example on the Pre-Retirement Fund, these have been treated as zero for the purposes of the projection.
- Any rebates due on the management charge have not been taken into account in the calculation of future projections. Find out more about our charge and rebate.