Annual management charge (AMC)

This is how much you’re charged to have a workplace pension each year.

With The People’s Pension it’s 0.5% of the value of your pension each year. 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 comes automatically from your pension savings.

Charges vary across different pension providers though – you might come across some higher ones, and some have monthly charges as well.