How much am I being charged for being a member of The People’s Pension?

Information on costs and charges for members of The People’s Pension.

Annual management charge

We charge 0.5% of the value of your pension pot each year to cover the cost of investing your pension savings.  This is known as an ‘annual management charge’ (AMC). The AMC is deducted automatically through a reduction in the unit price of the fund that you’re invested in.

To put it another way you’re charged just 50 pence a year for every £100 of the value of your account. This annual charge is automatically reflected in the value of your pension savings.

Transaction costs

Costs will also be incurred by investment funds when assets are bought, sold, or lent by the fund. These are called ‘transaction costs’. Your pension pot is indirectly affected by such costs as these reduce the net investment returns of the funds. There are various types of transaction costs, eg brokerage fees, stamp duty and custodian fees, foreign exchange levies and bid/offer spreads.

Take a look at the full details of the Scheme transaction costs.

Being clear

We’re keen to make pensions as transparent as possible – so we want you to be clear on how our costs and charges could affect the value of your pension pot over the short and long term.

The effect of charges on your pension pot depends on how much and how long you contribute and what fund you invest in.

Below are projections showing estimates of the effect of costs and charges on a pension pot. Figures are based on our default ‘balanced’ investment profile and on each of our investment funds. These examples assume a starting pot value of £1,000 and a gross contribution of £100 a month.

Please note that these charges may change over time, and these values are not guaranteed.

Costs on our default investment option

The ‘balanced’ investment profile

The ‘balanced’ investment profile gradually moves the investment of the member’s pension savings, on an annual basis, to lower-risk investments as they approach their selected retirement age. This process is known as a ‘glidepath’ and it begins 15 years before the member’s selected retirement age.

The ‘balanced’ investment profile is the default option so if you haven’t changed your investment choice, this is the one that will apply to you.


Years in Scheme
Pot value before charges Pot value after all costs and charges deducted
1 year £2,270 £2,260
3 years £5,080 £5,030
5 years £8,280 £8,170
10 years £18,200 £17,800
15 years £31,800 £30,500
20 years £49,800 £47,200
25 years £73,600 £68,800
30 years £104,000 £96,500
35 years £144,000 £130,000
40 years £190,000 £170,000
45 years £242,000 £213,000

Costs on our other investment fund options

Our members can also self-select to the following investment funds.

More information on our investment funds.

The Global Investment (up to 85%) Shares Fund

Years in Scheme Pot value before charges Pot value after all costs and charges deducted
1 year £2,270 £2,260
3 years £5,080 £5,030
5 years £8,280 £8,170
10 years £18,200 £17,800
15 years £31,800 £30,500
20 years £49,800 £47,200
25 years £73,600 £68,800
30 years £104,000 £96,500
35 years £145,000 £131,000
40 years £197,000 £176,000
45 years £265,000 £233,000

The Global Investment (up to 100%) Shares Fund

Years in Scheme Pot value before charges Pot value after all costs and charges deducted
1 year £2,270 £2,270
3 years £5,120 £5,080
5 years £8,400 £8,280
10 years £18,700 £18,200
15 years £33,000 £31,700
20 years £52,500 £49,700
25 years £78,700 £73,500
30 years £113,000 £104,000
35 years £160,000 £145,000
40 years £221,000 £197,000
45 years £301,000 £264,000

The Global Investment (up to 60%) Shares Fund

Years in Scheme Pot value before charges Pot value after all costs and charges deducted
1 year £2,260 £2,250
3 years £5,040 £4,990
5 years £8,170 £8,050
10 years £17,800 £17,300
15 years £30,500 £29,300
20 years £47,200 £44,700
25 years £68,900 £64,400
30 years £96,700 £89,100
35 years £132,000 £120,000
40 years £177,000 £158,000
45 years £234,000 £207,000

The Pre-Retirement Fund

Years in Scheme Pot value before charges Pot value after all costs and charges deducted
1 year £2,240 £2,240
3 years £4,950 £4,900
5 years £7,950 £7,830
10 years £16,900 £16,400
15 years £28,200 £27,100
20 years £42,600 £40,400
25 years £60,500 £56,600
30 years £82,800 £76,400
35 years £110,000 £100,000
40 years £143,000 £129,000
45 years £185,000 £164,000

The Ethical Fund

Year in Scheme Pot value before charges Pot value after all costs and charges deducted
1 Years £2,270 £2,270
3 Years £5,120 £5,080
5 Years £8,400 £8,280
10 Years £18,700 £18,200
15 Years £33,000 £31,700
20 Years £52,500 £49,600
25 Years £78,700 £73,300
30 Years £113,000 £104,000
35 Years £160,000 £144,000
40 Years £221,000 £196,000
45 Years £301,000 £263,000

The Annuity Fund

Years in Scheme Pot value before charges Pot value after all costs and charges deducted
1 year £2,240 £2,230
3 years £4,910 £4,860
5 years £7,840 £7,730
10 years £16,400 £16,000
15 years £27,200 £26,200
20 years £40,500 £38,500
25 years £56,800 £53,400
30 years £76,700 £71,200
35 years £100,000 £92,600
40 years £130,000 £117,000
45 years £165,000 £148,000

The Shariah Fund

Years in Scheme Pot value before charges Pot value after all costs and charges deducted
1 year £2,270 £2,270
3 years £5,120 £5,080
5 years £8,400 £8,280
10 years £18,700 £18,200
15 years £33,000 £31,700
20 years £52,500 £49,600
25 years £78,700 £73,300
30 years £113,000 £104,000
35 years £160,000 £144,000
40 years £221,000 £196,000
45 years £301,000 £263,000

The Cash Fund

Years in Scheme Pot value before charges Pot value after all costs and charges deducted
1 year £2,230 £2,220
3 years £4,860 £4,820
5 years £7,730 £7,630
10 years £16,000 £15,600
15 years £26,200 £25,200
20 years £38,500 £36,600
25 years £53,400 £50,200
30 years £71,200 £66,200
35 years £92,600 £85,100
40 years £117,000 £107,000
45 years £148,000 £133,000
  • Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
  • Starting pot size is £1000
  • Contributions are assumed to be £100 per month from age 22 to 68 and increase each year in line with inflation
  • Values are estimates and not guaranteed
  • Charges include the 0.5% annual management charge and transaction costs

Growth rates for each fund are as follows:

  • The ‘balanced’ investment profile: The Global Investment (up to 85%) Shares Fund 4.5%, gradually switching into the Pre-Retirement Fund 3.0% in the last 15 years
  • The Global Investment (up to 85%) Shares Fund: 4.5%
  • The Global Investment (up to 100%) Shares Fund: 5.0%
  • The Global Investment (up to 60%) Shares Fund: 4%
  • The Pre-Retirement Fund: 3%
  • The Annuity Fund: 2.5%
  • The Shariah Fund: 5%
  • The Cash Fund: 2%