Member annual management charge

More dough as your savings grow! Discover how our annual management charge works and how members are rewarded as they save

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I’m a member

Pension management charges

Every workplace pension scheme charges members for looking after their money. You might hear this called an ‘annual management charge’, ‘management charge’ or ‘AMC’ for short. The higher the charge, the less money goes towards your retirement.

As we’re run by a not-for-profit organisation, we want to help you potentially save thousands of pounds more1 by effectively reducing the rate we charge you as your savings increase.

1 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.

Our annual management charge (AMC)

Your AMC is made up of 3 parts

Annual charge

An annual charge of £2.50 deducted during the scheme year.

Management charge

A management charge of 0.5% of the value of your pension pot each year.

Rebate

A potential rebate on some of your management charge for savings over £6k.

Annual management charge explained

For more detailed information, see the ‘You might be wondering…’ section.

What this means for you

How much is in your pension pot?

£15,000

Estimated charges & rebate in a typical year:

 Annual charge
£0.00 0.00%
+ Management charge
£0.00 0.00%
- Rebate
£0.00 0.00%
=
£0.00 0.00%

Discover how much your pension pot is worth

Use your ‘Current total fund value’ from your Online Account in the calculator above to get an idea of your annual management charge at the moment.

 

Boost your savings with us to receive a larger rebate

Saving for later life is one of the best things you can do with any spare money – perhaps not one of the most fun things, but definitely one of the smartest. By saving a little more, you could increase the rebate you receive on your management charge, effectively reducing the rate you’re charged. This could add thousands of pounds more1 towards your future. There are 2 ways you could consider doing this.

1. Bring all your pots together

If you’ve worked for more than one employer, it’s likely you’ll have more than one pension pot. By bringing all your pots together with us (known as transferring or consolidating), you could receive a larger rebate as your pension pot would be bigger. Plus, it’ll make it easier to keep track of your money.

2. Increase the amount you pay in

The more you pay in (or ‘contribute’) to your pension, the larger the rebate you could receive – and so the lower your charge rate could effectively become. You can ask your employer to set up the extra payments for you or you can set up a Direct Debit in your Online Account.

1 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.

The impact of boosting your savings

Neil has saved £1,500 so far

So in a typical year, the annual charge of £2.50 plus the management charge of 0.5% meant that he paid £102 and received no rebate.

What will happen as his pot grows
£120 is paid into Neil’s pot each month.

Once he has over £6,000 in his pot, he’ll start to receive a rebate on his management charge, providing a nice little extra boost to his pension savings.

Plus, he could get there quicker if he considered bringing other pension pots into The People’s Pension or increasing the amount he contributes.

Kate has £15,000 saved so far

So in a typical year, the annual charge of £2.50 plus the management charge of 0.5% meant that she paid £77.502. Then, each month throughout the year, she received a rebate that would have totalled £14 by the end of the year. Therefore, the charge less the rebate was £63.50 for the year.

How her charge rebate is calculated
On the £4,000 between £6,000 and £10,000, she received a rebate of 0.1% (£4 for the year). And on the £5,000 above £10,000, she received a rebate of 0.2% (£10 for the year).

The more Kate saves the bigger her rebate will become, meaning more money will be going towards her retirement. What’s not to like?

2 Pounds and pence figures are for illustrative purposes only and you may pay slightly more or less than the figures quoted. The management charge examples shown don’t incorporate projected unit price or inflation increases during the case study periods.

You might be wondering…

Looking for more information?

The Pensions Advisory Service has more information in their ‘Top tips for your pension: Pension scheme charges’.

Get to grips with your pension through your Online Account

Manage your pension savings online, transfer in other pension pots, and see how much the management charge rebate adds to your retirement savings.

I’m an employer

Pension management charges

Every workplace pension scheme charges their members for looking after their money. You might hear this called an ‘annual management charge’, ‘management charge’ or ‘AMC’ for short. Our charge is applied at a member level rather than scheme level, so everyone has access to the same great rate.

As we’re run by a not-for-profit organisation, we want to help our members (your employees) potentially save thousands of pounds more1 by effectively reducing the rate we charge them as their savings increase.

1 See the ‘You might be wondering…’ section below for details on how we worked out that our members (your employees) could save ‘thousands of pounds more’.

You can download this video from our communications toolkit and share it with your employees to help them understand our annual management charge.

Our annual management charge (AMC)

An employee’s AMC is made up of 3 parts

Annual charge

An annual charge of £2.50 deducted during the scheme year.

Management charge

A management charge of 0.5% of the value of their pension pot each year.

Rebate

A potential rebate on some of their management charge for savings over £6k.

Annual management charge explained

For more detailed information, see the ‘You might be wondering…’ section.

What this means for an employee

How much is in an employee’s pot?

£15,000

Estimated charges & rebate in a typical year:

 Annual charge
£0.00 0.00%
+ Management charge
£0.00 0.00%
- Rebate
£0.00 0.00%
=
£0.00 0.00%

Help your employees to save more

Are you already with The People’s Pension?


Let your employees know they can combine their pensions

Use our letter/email templates, forms and flyers to help your employees think about transferring their other pensions from previous employers into The People’s Pension – they could receive a larger rebate plus it’ll make keeping track of their savings easier.

Consolidate all your schemes with us

It’ll save you time and hassle. And means more of your employees could potentially benefit from a lower charge, giving them more money for their future.

Hear how easy it was for Rentokil to consolidate with us


By choosing The People’s Pension you’ll be joining one of the largest master trusts in the UK, receive excellent customer service from our UK based contact centre and help your employees save more for later life.

Ready to sign up?

Signing up with us is quick, easy and there’s plenty of help along the way.

Still not sure?

See how The People’s Pension compares to other workplace pension providers or watch the video on why Rentokil came on board.

Hear how easy it was for Rentokil to sign up with us

You might be wondering…

Help your employees understand our charges

Want to communicate with your employees about their pension and highlight the benefits they’re getting from you through the scheme?

Use our videos, flyers and letter/email templates to explain our annual management charge to your employees.

I’m an adviser

Pension management charges

As we’re run by a not-for-profit organisation, we want to help our members (your clients’ employees) potentially save thousands of pounds more1 by effectively reducing the rate we charge them as their savings increase.

We do this by way of a rebate on the management charge.

The inclusion of the annual charge part of the AMC creates a fairer charge as the costs are spread more equitably across all members.

1 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.

You and your clients can download this video from our communications toolkit and share it with members to help them understand our annual management charge.

Our annual management charge (AMC)

A member’s AMC is made up of 3 parts

Annual charge

An annual charge of £2.50 deducted during the scheme year.

Management charge

A management charge of 0.5% of the value of their pension pot each year.

Rebate

A potential rebate on some of their management charge for savings over £6k.

Annual management charge explained

For more detailed information, see the ‘You might be wondering…’ section

What this means for a member

How much is in a member’s pot?

£15,000

Estimated charges & rebate in a typical year:

 Annual charge
£0.00 0.00%
+ Management charge
£0.00 0.00%
- Rebate
£0.00 0.00%
=
£0.00 0.00%

How you can help your clients’ employees save more

Is your client already with The People’s Pension?


Let members know they can combine their pensions

Use our letter/email templates, forms and flyers to help your client’s employees think about transferring their other pensions from previous employers into The People’s Pension – they could receive a larger rebate plus it’ll make keeping track of their savings easier.


Consolidate your client’s other schemes with us

It’ll save time and hassle. And means more of their employees could potentially benefit from a lower charge, giving them more money for their future.

Hear how easy it was for Rentokil to consolidate with us


By choosing The People’s Pension your client will be joining one of the largest master trusts in the UK, receive excellent customer service from our UK-based contact centre and help their employees save more for later life.

Ready to get your client signed up?

Signing up with us is quick , easy and we’ll give as much or as little support along the way as you need, so you’re free to manage each client as you see fit – after all, you know them and the way they work.


Still not sure?

See how The People’s Pension compares to other workplace pension providers or watch the video on why Rentokil came on board.

Hear how easy it was for Rentokil to sign up with us

You might be wondering…

Help your client’s employees understand our charges

Want to communicate with members about their pension and highlight the benefits they’re getting through their pension scheme?

Use our videos, flyers and letter/email templates to explain our annual management charge to your client’s employees.

I’m none of these

Not a member, employer or adviser? Here’s some general information about how our annual management charge works for members.

Pension management charges

Every workplace pension scheme charges members for looking after their money. You might hear this called an ‘annual management charge’, ‘management charge’ or ‘AMC’ for short. Our charge is applied at a member level rather than scheme level, so everyone has access to the same great rate.

As we’re run by a not-for-profit organisation, we want to help our members potentially save thousands of pounds more1 by effectively reducing the rate we charge them as their savings increase.

1 See the ‘You might be wondering…’ section below for details on how we worked out that members could save ‘thousands of pounds more’.

Our annual management charge (AMC)

A member’s AMC is made up of 3 parts

Annual charge

An annual charge of £2.50 deducted during the scheme year.

Management charge

management charge of 0.5% of the value of their pension pot each year.

Rebate

A potential rebate on some of their management charge for savings over £6k.

Annual management charge explained

For more detailed information, see the ‘You might be wondering…’ section.

What this means for a member

How much is in a member’s pot?

£15,000

Estimated charges & rebate in a typical year:

 Annual charge
£0.00 0.00%
+ Management charge
£0.00 0.00%
- Rebate
£0.00 0.00%
=
£0.00 0.00%
Discover how much is in your pension pot

If you’re a member of The People’s Pension, you can set up or log in to your account online to see how much you’ve saved so far. Use your ‘Current total fund value’ from your Online Account in the calculator above to get an idea of your AMC at the moment.

Let your employees know the good news

If you’re an employer with a scheme with The People’s Pension, you can use the videos, letter and email templates in our communications toolkit to let your employees know how they can benefit from the rebate as they save more.

Recommend us with confidence

If you’re an adviser representing an employer client, it’s good to know that our charging structure means The People’s Pension is a great choice for their employees. And there’s plenty more reasons to recommend us to your clients.

You might be wondering…

Keep up to date with our latest developments

Because we’re run by a not-for-profit organisation, we do things a little differently at The People’s Pension, and we make sure everything we do is for the benefit of our members.

Follow us on social media to see what we’re up to…