Pension advice

[t1grm]

I took a pension out in August 98 and stopped contributing in December 2001. I’ve since found out that since I stopped contributing they’ve been charging me 400 odd quid a year management fees. At this rate there’ll be nothing left in the fund well before I retire. Is there anything I can do about it?

[t1grm]

Bump Hopefully a few IFA's are in the office by now

[devious]

Too many variables to be able to give a definitive answer, but broadly yes, you can do something about the charges. Maybe. However, if your pension fund is worth more than £40,000 the charges aren't out of line with what is generally available - 1% p.a. Some providers will charge less for "large" funds.

If the fund is significantly smaller that £40,000 then you may benefit by transferring your fund to a provider with lower charges, but you may have to suffer penalties to do so. Many providers claw back the charges they would have taken had the contract run its full term. Compare the fund value with the transfer value. If they are the same, look for a provder who will charge you less to handle your fund.

Simple really.

[devious]

Oh, and if the transfer value is lower than the fund value, you need to work out whether what you could save on charges would be worthwhile, taking into account potential future investment returns and the charges the alternative provider would take.

Of course.