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 annual management charge
Members of The People’s Pension will pay an annual management charge made up of:
What this means for you as a member
See how much your management charge and rebate will typically be, depending on how much is in your pension pot.
If you had
in your pension pot…
…your charge and rebate in a typical month would be…
Log into your Online Account to see how much is in your pot.
The calculations that make up your rebate…
|Up to £6k||Over £6k and up to £10k||Over £10k and up to £25k||Over £25k and up to £50k||Over £50k||Total|
|The part of your savings in each band:||£0@ 0.0% rebate||£0@ 0.1% rebate||£0@ 0.2% rebate||£0@ 0.25% rebate||£0@ 0.3% rebate||£0.00|
|Estimated rebate for each band:||£0.00||£0.00||£0.00||£0.00||£0.00||£0.00|
|Savings in each band:||Rebate in each band:|
|Up to £6k||£0@ 0.0% rebate||£0.00|
|>£6k to £10k||£0@ 0.1% rebate||£0.00|
|>£10k to £25k||£0@ 0.2% rebate||£0.00|
|>£25k to £50k||£0@ 0.25% rebate||£0.00|
|Over 50k||£0@ 0.3% rebate||£0.00|
When will I start to receive a rebate?
As more money is added into your pension pot, your savings will grow over time. Once you've got more than £6,000 in your pot with us, you'll typically start to receive a rebate on your management charge.
- Figures do not include the £2.50 annual charge.
- The estimated rebate given is based on a 30-day charge period, within a 365-day year. Please note that the first rebate will cover a 6-month charge period and will be applied in August 2020, thereafter it will be applied monthly.
- Pounds and pence figures are for illustrative purposes only, the actual management charge and rebate may be slightly more or less than the figures quoted due to fluctuations in the unit price.
- The estimated management charge shown does not incorporate projected unit price or inflation increases during the charge period.
- The estimated rebate given is for a member who does not transfer in any other pensions savings, or accesses their pot, in that 30-day charge period.
- For sums of £18,000 and above, the estimated rebate given may differ from the total rebate that would be applied due to rounding.
Here’s some examples…
Neil has £3,000 saved so far
So in a 30-day month, the management charge of 0.5% meant that he paid £1.232.
What will happen as his pot grows
£120 is paid into Neil’s pot each month in contributions. So his pension savings will continue to grow over time.
And once he has over £6,000 is his pot, he’ll effectively receive a reduction on his management charge by way of a rebate, when we next calculate the rebate.
Michaela has £14,000 saved so far
So in a 30-day month, the management charge of 0.5% meant that she paid £5.752. Then, at the end of that month, she received a rebate of £0.99. Therefore the charge paid less the rebate was £4.76 for that month.
How her charge rebate is calculated
On the £4,000 between £6,000 and £10,000, we gave back a rebate of 0.1% (£0.33 for that month). And on the £4,000 above £10,000, we gave back a rebate of 0.2% (£0.66 for that month). So this gave her a rebate of £0.99 in total.
As set out above, the first rebate will be calculated over a 6-month charge period from 17 February 2020 to 16 August 2020 and will be applied in August 2020. During this initial 6-month charge period, Michaela’s management charge would have been £34.902, and her rebate would have been £5.98 – so the management charge paid less the rebate would have been £28.92 for that 6-month charge period.
1 The minimum we can give back as a rebate is 1 pence.
2 Pounds and pence figures are for illustrative purposes only, members may pay slightly more or less than the figures quoted. The management charge examples shown do not incorporate projected unit price or inflation increases during the charge period. Examples do not include the £2.50 annual charge.
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’.