Transaction costs

See how the value of a member’s 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 fundManagement chargeTransaction costs
Global Investments (up to 85% shares) Fund0.5% 0.05%
Global Investments (up to 100% shares) Fund0.5% 0.05%
Global Investments (up to 60% shares) Fund0.5% 0.05%
Pre-Retirement Fund0.5% 0.04%
Ethical Fund0.5% 0.01%
Annuity Fund0.5% -0.01%
Shariah Fund0.5% 0.01%
Cash Fund0.5% 0.003%

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 2021, have been provided to show estimates of the impact of the 0.5% management charge, the £2.50 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.

Please note that these charges may change over time, and these values are not guaranteed.

Projections for the scheme year ending on 31 March 2021…

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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,640 £1,630
3 years£5,210 £5,160
5 years£9,170 £9,040
10 years£21,000 £20,500
15 years£36,000 £34,900
20 years£55,100 £53,000
25 years£78,900 £75,400
30 years£108,000 £103,000
35 years£143,000 £135,000
40 years£182,000 £171,000
to age 68 £232,000 £216,000

The ‘Balanced’ investment profile, consists of the Global Investment (up to 85%) Shares Fund (projected growth rate 3.0%), gradually switching into the Pre-Retirement Fund (projected growth rate 1.5%) 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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,640 £1,630
3 years£5,210 £5,160
5 years£9,170 £9,040
10 years£21,000 £22,300
15 years£36,000 £34,900
20 years£55,100 £53,000
25 years£78,900 £75,400
30 years£108,000 £103,000
35 years£145,000 £136,000
40 years£189,000 £178,000
to age 68 £257,000 £239,000

The assumed growth rate for the Global Investments (up to 85% shares) Fund is 3% 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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,640 £1,640
3 years£5,240 £5,200
5 years£9,280 £9,150
10 years£21,500 £21,000
15 years£37,400 £36,200
20 years£57,900 £55,600
25 years£83,900 £80,200
30 years£116,000 £111,000
35 years£158,000 £149,000
40 years£210,000 £197,000
to age 68 £289,000 £269,000

The assumed growth rate for the Global Investments (up to 100% shares) Fund is 3.5% 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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,640 £1,630
3 years£5,170 £5,120
5 years£9,060 £8,930
10 years£20,500 £20,000
15 years£34,700 £33,700
20 years£52,400 £50,400
25 years£74,200 £70,900
30 years£100,000 £95,700
35 years£133,000 £125,000
40 years£172,000 £161,000
to age 68 £229,000 £214,000

The assumed growth rate for the Global Investments (up to 60% shares) Fund is 2.5% 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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,630 £1,620
3 years£5,100 £5,050
5 years£8,840 £8,720
10 years£19,500 £19,000
15 years£32,300 £31,300
20 years£47,600 £45,800
25 years£65,800 £62,900
30 years£87,300 £83,000
35 years£112,000 £106,000
40 years£142,000 £134,000
to age 68 £184,000 £173,000

The assumed growth rate for the Pre-Retirement Fund is 1.5% 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 schemePot value before costs and chargePot value after costs and charge deducted
1 Years£1,640 £1,640
3 Years£5,240 £5,200
5 Years£9,280 £9,150
10 Years£21,500 £21,000
15 Years£37,400 £36,300
20 Years£57,900 £55,700
25 Years£83,900 £80,300
30 Years£116,000 £111,000
35 Years£158,000 £149,000
40 Years£210,000 £197,000
to age 68 £289,000 £269,000

The assumed growth rate for the Ethical Fund is 3.5% 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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,630 £1,620
3 years£5,060 £5,020
5 years£8,740 £8,630
10 years£19,000 £18,600
15 years£31,200 £30,400
20 years£45,400 £44,000
25 years£62,100 £59,800
30 years£81,500 £78,100
35 years£104,000 £99,400
40 years£130,000 £123,000
to age 68 £166,000 £158,000

The assumed growth rate for the Annuity Fund is 1.0% 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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,640 £1,640
3 years£5,240 £5,200
5 years£9,280 £9,160
10 years£21,500 £21,000
15 years£37,400 £36,300
20 years£57,900 £55,800
25 years£83,900 £80,500
30 years£116,000 £111,000
35 years£158,000 £150,000
40 years£210,000 £198,000
to age 68 £289,000 £271,000

The assumed growth rate for the Shariah Fund is 3.5% 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 schemePot value before costs and chargePot value after costs and charge deducted
1 year£1,620 £1,620
3 years£5,020 £4,980
5 years£8,630 £8,520
10 years£18,600 £18,200
15 years£30,100 £29,300
20 years£43,400 £41,900
25 years£58,600 £56,400
30 years£76,100 £72,900
35 years£96,100 £91,700
40 years£119,000 £113,000
to age 68 £150,000 £143,000

The assumed growth rate for the Cash Fund is 0.5% per year.

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.