Transaction costs
See how the value of your pension pot is affected by transaction costs and the member management charge.
What are transaction costs?
Costs are incurred by investment funds when assets are bought, sold, or lent by the fund. These are called ‘transaction costs’.
Our members’ pension pots will be affected by such costs as these reduce the net investment returns of the funds.
There are various types of transaction costs, eg brokerage fees, stamp duty and custodian fees, foreign exchange levies and bid/offer spreads.
Breakdown of our transaction costs
The transaction costs for each of our investment funds are as follows…
| Investment fund | Management charge | Transaction costs |
| Global Investments (up to 85% shares) Fund | 0.5% | 0.09% |
| Pre-Retirement Fund | 0.5% | 0.06% |
| Global Investments (up to 60% shares) Fund | 0.5% | 0.07% |
| Global Investments (up to 100% shares) Fund | 0.5% | 0.09% |
| Ethical Fund | 0.5% | 0.01% |
| Annuity Fund | 0.5% | 0.01% |
| Shariah Fund | 0.5% | 0.02% |
| Cash Fund | 0.5% | 0.00% |
Being clear
We’re keen to make pensions as transparent as possible – so we want our members to be clear on how our costs and charges could affect the value of their pension pot over the short and long term.
The projections below, for the scheme year ending on 31 March 2024, have been provided to show estimates of the impact of the 0.5% management charge, the £4.50 annual charge, and any rebates due on the management charge and transaction costs on the value of an example pension pot — for our default investment option (the ‘balanced’ investment profile) and for each of our investment funds. Find out more about our member annual management charge.
The effect of these costs and charge on the value of a pension pot would depend on how much is contributed and for how long, as well as which fund it’s invested in.
These projections are based on members who are on our standard charges. Members can find out more about their exact charges in their Online Account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
Please note, these projections are for the previous scheme year. These charges may change over time, and these values are not guaranteed.
Projections for the scheme year ending on 31 March 2024…
Default investment option: ‘balanced’ investment profile
The ‘balanced’ investment profile gradually moves the investment of the member’s pension savings, on an annual basis, to lower-risk investments as they approach their selected retirement age. This process is known as a ‘glidepath’ and it begins 15 years before the member’s selected retirement age.
The ‘balanced’ investment profile is the default option so if you’re a member of The People’s Pension and you haven’t changed your investment choice, this is the one that will apply to you.
Find out more about how investments work with The People’s Pension
Table of pension pot value projections for the ‘balanced’ investment profile
| Years in scheme | Pot value before costs and charge | Pot value after all costs and charges deducted |
| 1 year | £2,130 | £2,120 |
| 3 years | £6,960 | £6,900 |
| 5 years | £12,600 | £12,400 |
| 10 years | £31,100 | £30,500 |
| 15 years | £57,800 | £56,300 |
| 20 years | £95,700 | £92,600 |
| 25 years | £148,000 | £143,000 |
| 30 years | £222,000 | £212,000 |
| 35 years | £320,000 | £304,000 |
| 40 years | £440,000 | £416,000 |
| to age 68 | £610,000 | £571,000 |
The ‘Balanced’ investment profile, consists of the Global Investment (up to 85%) Shares Fund (growth rate 6.0%), gradually switching into the Pre-Retirement Fund (growth rate 4.0%) in the last 15 years.
Global Investments (up to 85%) Shares Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Global Investments (up to 85%) Shares Fund
| Years in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 year | £2,130 | £2,120 |
| 3 years | £6,960 | £6,890 |
| 5 years | £12,600 | £12,400 |
| 10 years | £31,100 | £30,400 |
| 15 years | £57,800 | £55,900 |
| 20 years | £95,700 | £91,700 |
| 25 years | £148,000 | £141,000 |
| 30 years | £222,000 | £209,000 |
| 35 years | £324,000 | £303,000 |
| 40 years | £464,000 | £429,000 |
| up to 68 years | £700,000 | £642,000 |
The assumed growth rate for the Global Investments (up to 85% shares) Fund is 6.0% per year.
Global Investments (up to 100% shares) Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Global Investments (up to 100% shares) Fund
| Years in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 year | £2,130 | £2,120 |
| 3 years | £6,960 | £6,890 |
| 5 years | £12,600 | £12,400 |
| 10 years | £31,100 | £30,400 |
| 15 years | £57,800 | £55,900 |
| 20 years | £95,700 | £91,700 |
| 25 years | £148,000 | £141,000 |
| 30 years | £222,000 | £209,000 |
| 35 years | £324,000 | £303,000 |
| 40 years | £464,000 | £430,000 |
| to age 68 | £700,000 | £642,000 |
The assumed growth rate for the Global Investments (up to 100% shares) Fund is 6.0% per year.
Global Investments (up to 60% shares) Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Global Investments (up to 60% shares) Fund
| Years in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 year | £2,110 | £2,100 |
| 3 years | £6,770 | £6,710 |
| 5 years | £12,000 | £11,800 |
| 10 years | £28,200 | £27,600 |
| 15 years | £49,700 | £48,200 |
| 20 years | £78,000 | £75,000 |
| 25 years | £114,000 | £109,000 |
| 30 years | £161,000 | £153,000 |
| 35 years | £222,000 | £209,000 |
| 40 years | £298,000 | £280,000 |
| to age 68 | £418,000 | £389,000 |
The assumed growth rate for the Global Investments (up to 60% shares) Fund is 4.0% per year.
Pre-Retirement Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Pre-Retirement Fund
| Years in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 year | £2,110 | £2,100 |
| 3 years | £6,770 | £6,700 |
| 5 years | £12,000 | £11,800 |
| 10 years | £28,200 | £27,500 |
| 15 years | £49,700 | £48,200 |
| 20 years | £78,000 | £74,900 |
| 25 years | £114,000 | £109,000 |
| 30 years | £161,000 | £153,000 |
| 35 years | £222,000 | £209,000 |
| 40 years | £298,000 | £279,000 |
| to age 68 | £418,000 | £387,000 |
The assumed growth rate for the Pre-Retirement Fund is 4.0% per year.
Ethical Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Ethical Fund
| Year in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 Years | £2,130 | £2,120 |
| 3 Years | £6,960 | £6,900 |
| 5 Years | £12,600 | £12,400 |
| 10 Years | £31,100 | £30,500 |
| 15 Years | £57,800 | £56,200 |
| 20 Years | £95,700 | £92,500 |
| 25 Years | £148,000 | £142,000 |
| 30 Years | £222,000 | £212,000 |
| 35 Years | £324,000 | £307,000 |
| 40 Years | £464,000 | £437,000 |
| to age 68 | £700,000 | £655,000 |
The assumed growth rate for the Ethical Fund is 6.0% per year.
Annuity Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Annuity Fund
| Years in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 year | £2,130 | £2,120 |
| 3 years | £6,960 | £6,900 |
| 5 years | £12,600 | £12,400 |
| 10 years | £31,100 | £30,500 |
| 15 years | £57,800 | £56,200 |
| 20 years | £95,700 | £92,500 |
| 25 years | £148,000 | £142,000 |
| 30 years | £222,000 | £212,000 |
| 35 years | £324,000 | £307,000 |
| 40 years | £464,000 | £437,000 |
| to age 68 | £700,000 | £656,000 |
The assumed growth rate for the Annuity Fund is 6.0% per year.
Shariah Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Shariah Fund
| Years in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 year | £2,130 | £2,120 |
| 3 years | £6,960 | £6,900 |
| 5 years | £12,600 | £12,400 |
| 10 years | £31,100 | £30,500 |
| 15 years | £57,800 | £56,200 |
| 20 years | £95,700 | £92,400 |
| 25 years | £148,000 | £142,000 |
| 30 years | £222,000 | £212,000 |
| 35 years | £324,000 | £307,000 |
| 40 years | £464,000 | £437,000 |
| to age 68 | £700,000 | £654,000 |
The assumed growth rate for the Shariah Fund is 6.0% per year.
Cash Fund
For those with more confidence in investing, rather than choosing one of our investment profiles or remaining in our default investment profile – members can decide for themselves where their pension savings are invested if they want to, by choosing from our investment funds.
Find out more about our investment funds and how to self select
Table of pension pot value projections for the Cash Fund
| Years in scheme | Pot value before costs and charge | Pot value after costs and charge deducted |
| 1 year | £2,090 | £2,090 |
| 3 years | £6,580 | £6,520 |
| 5 years | £11,400 | £11,300 |
| 10 years | £25,600 | £25,100 |
| 15 years | £43,000 | £41,800 |
| 20 years | £64,000 | £62,000 |
| 25 years | £89,500 | £86,200 |
| 30 years | £120,000 | £115,000 |
| 35 years | £156,000 | £149,000 |
| 40 years | £200,000 | £190,000 |
| to age 68 | £263,000 | £249,000 |
The assumed growth rate for the Cash Fund is 2.0% per year.
Our assumptions
As each member has a different amount of savings within the Scheme and the amount of any future investment returns and future costs and charges cannot be known in advance, the Trustee has had to make a number of assumptions about what these might be. The assumptions are explained below:
- Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
- The illustration does not indicate the likely variance and volatility in the possible outcomes from each fund.
- Starting pot size is assumed to be £0 unless otherwise stated.
- Contributions are assumed to be £173 per month from age 22 to 68 and increase each year in line with inflation (2.5%) (average monthly contribution was £161 at 31 March 2023).
- Values are estimates and not guaranteed.
- Charges include the annual management charge and transaction costs.
- Charges include the 0.5% management charge, the £4.50 annual charge, and any rebates due on the management charge. Find out more about our member annual management charge. These charges may change over time, and these values are not guaranteed.
- Inflation is assumed to be 2.5% per year.
- No allowance for active management has been made.
Annual management charge
Every workplace pension scheme charges members for looking after their money.
Investing your pension
We invest your money so it has a better chance of being worth more in the long run.
Investment funds
Read about our investment funds and compare their past performances.