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.
- The £2.50 annual charge and any rebates due on the management charge have not been taken into account in the calculation of future projections. Find out more about our member annual management charge.