How is your annual management charge calculated?

The annual management charge is made up of 3 elements: an annual charge, a management charge and a potential rebate on the management charge.

How the annual charge is calculated

Members pay an annual charge which is usually deducted in October, if you have investments with us on 1 April of that year. We’ll only apply an annual charge if we calculate that you’ll have a pot size of £100 or more after the charge is taken.

If a member has a flexi-access drawdown account in addition to their pension pot, the annual charge will only be taken once from their main pension pot – it won’t be deducted from their flexi-access drawdown account. If a member only has savings in their flexi-access drawdown account, no annual charge will be deducted.

To find out exactly how much you’re charged, please log into your account and go to ‘Manage my pension’, followed by ‘Charges’.

How your management charge is calculated

The calculation for your management charge is:

  • the value of your pension pot
  • multiplied by our management charge of 0.5%
  • then divided by the (number of days in the year).

(0.5/365)=0.00137%

So, each day our fund managers (State Street Global Advisors/HSBC Global Asset Management) take 0.00137% of the value of assets as a charge. This is taken into account when calculating the daily unit price.

How the rebate on your management charge is calculated

You’ll also typically receive a rebate on your management charge once you have over a certain amount in your pot.

The rebate is calculated at the end of each rebate period. It’s automatically added back into your pot each month and rewards you for saving. This helps your pension pot to grow.

Read more about our annual management charge.

To find out exactly how much you’re charged, please log into your account and go to ‘Manage my pension’, followed by ‘Charges’.

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