Member annual management charge
Save more, grow more. We give almost £3 million back to our members each month 1 through a savings reward (also known as a rebate) on our charge. And with our one pot, best price guarantee you’ll be charged at the lowest rate available to you.
Pension management charges
Every workplace pension scheme charges members for looking after their money. You might hear this called an annual management charge or AMC for short. The higher the charge, the less money goes towards your retirement.
What your charge pays for
Among other things, it pays for:
- Expert decision making on where your money is invested – so it can grow for your future.
- Access to our UK-based telephone support team – on hand to answer any questions you have.
- Strong scheme governance through independent trustees who ensure the scheme operates in your interest.
- Maintaining your online account and calculators which can help you manage your pension savings.
- Day-to-day running costs – such as producing annual statements.
The Trustees of People’s Pension act on your behalf to ensure that the scheme is properly run and offers value for members. This value is assessed every year – see our latest value for members statement.
Our price promise
Unlike most providers, we offer our members a one pot, best price guarantee. Even if you leave us and come back with a new employer on a different management charge rate or transfer in other pension savings, your money will stay in the same pot and always be charged at the lowest available rate you’ve had.2
And as you add to your pension, we can help you save thousands of pounds more3 by reducing the rate we charge you as your savings increase.
1 The average monthly amount given back to members was £2,903,689 in April and May 2025.
2For example, if you had a savings reward of 0.1% on our 0.5% management charge with one employer and then had a savings reward of 0.05% with another employer, you’ll still get the better rate of 0.1%. That’s our price promise and it also applies if you’re offered a lower annual charge.
3 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
Management charge
A management charge of 0.5% of the value of your pension pot each year.
Savings reward (rebate)
A savings reward on some of your management charge for savings over £3k.
Annual management charge explained
How the annual charge works
If you’ve been with People’s Pension long enough, we’ll deduct the £4.50 annual charge from your pension pot by the end of the scheme year – which runs from 1 April to 31 March.
We don’t take an annual charge:
- From flexi-access drawdown accounts – we only take this charge from your main pension pot
- From pots below £104.50, when the charge is calculated
- If you leave People’s Pension before the annual charge is taken
How the management charge works
To put the 0.5% management charge another way, it’s just 50 pence a year for every £100 in your pot.
With us, you pay the same management charge regardless of the fund(s) you’re invested in – unlike some pension providers who charge you more for moving your savings around.
We deduct the 0.5% management charge automatically through a reduction in the unit price of the fund(s) that you’re invested in. Unit prices are calculated daily, and the charge is reflected in the value of your pension savings.
Discover the exact calculation for the management charge in our knowledge base.
How the savings reward (rebate) on the management charge works
This will depend on how much is in your pot. You’ll receive a savings reward on the management charge of between 0.1% and 0.3% based on the value of your pension pot when we complete our calculations.
For the part of your savings:
- up to £3,000, no savings reward is given
- over £3,000 and up to £10,000, we’ll give back 0.1%
- over £10,000 and up to £25,000, we’ll give back 0.2%
- over £25,000 and up to £50,000, we’ll give back 0.25%
- over £50,000, we’ll give back 0.3%.
This all happens automatically and you’ll see your savings reward listed as a monthly rebate in your online account.
Please note:
- The minimum we can give back as a savings reward is 1 pence.
- If you take your money out, we’ll work out future savings rewards on the value of any remaining savings.
- If you receive more than one annual statement from us a year, it could mean you’ve ended up with two different customer numbers. This means you may pay the annual charge twice and you may not receive your full savings reward entitlement. If this has happened, find out how to correct the issue.
- This information is based on our standard charges. You can find out your exact charges in your online account. Once logged in, you’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
For more detailed information, see the ‘You might be wondering…’ section.
What this means for you
Annual management charge calculator
Use the slider to estimate your pot size and see your likely changes. Adjust the slider to see how your rebate increases as your pot size grows.
Selected pot size £15,000
Your actual annual management charge:
£62.50 0.42%
|
Annual charge | £0.00 0.00% |
|
+ Management charge | £0.00 0.00% |
|
- Rebate | £0.00 0.00% |
Annual charge
£0.00 0.00%
Management charge
£0.00 0.00%
Rebate
£0.00 0.00%How the savings reward is calculated
Change the pot size in the calculator above to see how the savings reward is worked out.
| Up to £3k | Over £3k | Over £10k | Over £25k | Over £50k | Total | |
|---|---|---|---|---|---|---|
| The part of the savings… | £00.0% | £00.1% rebate | £00.2% rebate | £00.25% rebate | £00.3% rebate | £0.00 |
| Estimated rebate for each band: | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 | £0.00 |
| The part of the savings… | Estimate rebate for each band: | |
|---|---|---|
| Up to £3k | £00.0% | £0.00 |
| Over 3k | £00.1% rebate | £0.00 |
| Over 10k | £00.2% rebate | £0.00 |
| Over 25k | £00.25% rebate | £0.00 |
| Over 50k | £00.3% rebate | £0.00 |
| Total | £0.00 | £0.00 |
Our assumptions:
- Pounds and pence figures are for illustrative purposes only, the actual management charge and savings reward may be slightly more or less than the figures we’ve shown due to fluctuations in the unit price.
- The estimated management charge shown doesn’t incorporate projected unit price or inflation increases during the scheme year.
- The estimated savings reward we’ve given is for a member who doesn’t transfer in any other pension savings, and/or doesn’t access their pot.
- For sums of £18,000 and above, the estimated savings reward we’ve given may differ from the total savings reward that would be applied due to rounding.
- This information is based on members who are on our standard charges. To find out exactly how much you’re charged, please log into your online account and go to ‘Manage my pension’, followed by ‘Charges’.
Discover the value of your pension pot
Use your ‘current total fund value’ from your online account in the calculator above to get an idea of your current annual management charge.
Set up your online account Access your online accountBoost your savings with us to receive a larger savings reward
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 savings reward you receive on your management charge, 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 savings reward 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 savings reward you may receive – which could reduce your charge rate. You can ask your employer to set up the extra payments for you or you can make personal payments directly into your pension.
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 £4.50 plus the management charge of 0.5% meant that he paid £122 and received no savings reward.
What will happen as his pot grows
£120 is paid into Neil’s pot each month.
Once he has over £3,000 in his pot, he’ll start to receive a savings reward 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 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 £4.50 plus the management charge of 0.5% meant that she paid £79.502. Then, each month throughout the year, she received a savings reward that would have totalled £17 by the end of the year. Therefore, the charge less the savings reward was £62.50 for the year.
How her savings reward charge is calculated
On the £7,000 between £3,000 and £10,000, she received a savings reward of 0.1% (£7 for the year). And on the £5,000 above £10,000, she received a savings reward of 0.2% (£10 for the year).
The more Kate saves the bigger her savings reward 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 we’ve shown don’t incorporate projected unit price or inflation increases during the case study periods.
You might be wondering…
How is the savings reward (rebate) on the management charge calculated?
The savings reward is calculated at the end of the rebate period based on your pension pot value3 on that date as set out in the ‘How the savings reward (rebate) on the management charge works‘ section above. The amount applied will vary depending on the number of days in each rebate period.
You’ll receive this a few days after the end of each savings reward period based on the unit price on the date it’s added, although this could be longer in unforeseen circumstances4. If you request to take your money, or transfer your savings to another provider before the savings reward is applied, you may not receive the savings reward.
Here’s an example…
If you had £15,000 in your pension pot, your savings reward will be calculated as follows:
- The first £3,000 gets no savings reward
- The next £7,000 gets a savings reward of 0.1% – equivalent to £7 a year
- The final £5,000 gets a savings reward of 0.2% – equivalent to £10 a year
- For a 31-day rebate period, the savings reward you’d receive would be £17x (31/365) = £1.44.
This information is based on our standard charges. You can find out your exact charges in your online account. Once logged in, you’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
3 The pension value used to calculate the savings reward (rebate) on your management charge includes all savings, including monies held in flexi-access drawdown. Receipt of the savings reward and its amount will depend on your activity during each rebate period. See ‘How is the savings reward affected when I transfer money in’ and ‘How is the savings reward affected when I take money out’ sections for more information. The pension value also includes previous savings rewards.
4 If the price of the fund falls between the date of calculation and the date the savings reward is applied, then the pounds and pence savings reward will buy more units than at the calculation date. And if the fund price rises, it will buy less units.
How will the savings reward be added to my pot?
The value of the savings reward will be used to purchase units in the fund or funds that you hold. If you hold more than one fund, we’ll purchase units proportionately, based on their value, across each of the funds held.
How is the savings reward affected when I take money out?
When you take all your money out, you’ll not receive a savings reward at the end of the rebate period, as you’ll have no savings remaining at that time.
If you take part of your money out, we’ll work out future savings rewards on the value of your remaining savings. Typically, if your pot remains in excess of £3,000, then you’ll still receive a savings reward.
Here’s an example…
If you had a pension pot of £15,000, you’d have benefited from a savings reward of 0.2% on £5,000 of this and 0.1% on £7,000. If you then take £7,000 and your pension value reduces to £8,000 by the end of the next rebate period, you’ll then get a savings reward of 0.1% on £5,000 of your savings.
More about your different options for taking your pension savings
How is the savings reward affected when I transfer money in?
When your transfer from another scheme completes, the value of that transfer will not be included when calculating the savings reward at the end of that rebate period. It will be included in subsequent rebate periods.
This is because any transferred amount has to be invested before the start of any rebate period in order to qualify for a savings reward for that period.
More about transferring other pensions into People’s Pension
What happens to the savings reward if an incorrect contribution is added?
If the value of your savings is wrong due to, for example, incorrect contributions or unit pricing errors and we need to carry out any corrective actions, we’ll refund any overpayment of our management charge and ensure you pay no more in management charges than if the error had not occurred.
No amendments will be made to any savings reward of management charges applied to your pension pot, prior to the error correction date.
What will I see in my online account?
You’ll see the savings reward (rebate) applied to your pension pot within the ‘Transactions’ tab of your online account. This will be shown monthly in pounds and pence.
If you don’t see a savings reward in your ‘Transactions’ tab, it may be that you don’t have enough money in your pot to qualify for a savings reward just yet. A savings reward on the management charge only applies on savings over £3,000.
The first savings reward we added to qualifying pots covered a 6-month rebate period from 17 February 2020 to 16 August 2020. From September 2020, we added the savings reward monthly, so members may have seen a larger amount in the first savings reward.
You’ll also see the annual charge in this ‘Transactions’ tab when it’s applied.
I’m a new member, do I qualify for a savings reward (rebate)?
To qualify for a savings reward, your money must be invested by the first day of a rebate period. So, when you first join People’s Pension, you won’t receive a savings reward at the end of your first rebate period.
Only unitised funds are included in the charge calculation, and units must be held on the first day of the rebate period to receive a savings reward. This means you’ll not start to qualify for a savings reward until after the end of the opt-out period.
What happens with the AMC when I die?
We’ll continue to apply the annual management charge until the pot is claimed.
This means we’ll continue to apply the annual charge, the 0.5% management charge, and the savings reward (rebate) on the management charge until the pot is claimed.
Your pension won’t receive a savings reward for the rebate period in which the claim is paid to your beneficiaries.
Are there any other costs I pay?
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.
Investment returns are automatically added to your pot through the unit price. These returns include the transaction costs.
How did you work out that I could save ‘thousands of pounds more’?
This projection is based on our charging structure of a flat 0.5% management charge, and using the following assumptions:
- a member aged 35 with a retirement age of 68
- a starting pension pot of £15,000
- earnings of £30,000 per annum
- gross contributions at 8% (of qualifying earnings for the current tax year)
- investment returns at 5% per annum
- inflation at 2.5% per annum.
Looking for more information?
MoneyHelper has more information in their ‘Top tips for your pension: Pension scheme charges’.
Oversee your pension using your online account
Manage your pension savings online, transfer in other pension pots, and see how much the savings reward on the management charge adds to your retirement savings.
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