Investment service costs
Discussion
I've got a workplace pension. Very standard one, with employer paying in minimum legal requirement. They keep sending stuff about moving my other investments over to them, and as I have got an ISA doing nothing very much I thought it would be worth looking into.
On the pension company's website it says "Our pricing is completely clear and transparent, see how much you’ll pay for a Fully-Managed Investment Portfolio. Service Costs: 0.40%. Product Costs: Typically 0.76%"
And they then provide a calculator to work out how much a year their fees will be.
If i were to invest £10,000, it calculates their fees as £116 per year or £9.67 per month
How is that anywhere near 0.4%? or even 0.76%?
I don't understand how they make it that amount.
I'm sure it is me being dim, but how do you work it out?
On the pension company's website it says "Our pricing is completely clear and transparent, see how much you’ll pay for a Fully-Managed Investment Portfolio. Service Costs: 0.40%. Product Costs: Typically 0.76%"
And they then provide a calculator to work out how much a year their fees will be.
If i were to invest £10,000, it calculates their fees as £116 per year or £9.67 per month
How is that anywhere near 0.4%? or even 0.76%?
I don't understand how they make it that amount.
I'm sure it is me being dim, but how do you work it out?
JulianPH said:
Who is the pension provider? At those costs the scheme does not remotely sound as if it is auto-enrolment compliant (max charges the equivalent of 0.75% a year).
They are called True Potential Investor. I've never heard of them except that they are the company my employer has appointed to run the pension scheme
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