Annual management charge reduced

The only charge your investment fund pays is to Royal London for managing the investments on your behalf and their role in running the scheme administration too.  This is called the “Annual Management Charge” (AMC) and was originally set at 0.73% for all funds.

The scheme structure itself is already a huge improvement on the “old style” pension plans.  For example, there are no deductions made when you add new money to your fund (the old “initial charge”); there are no deductions made if you transfer to another employer scheme if you leave the Company; and, there are no deductions made for changing your plan’s contributions or even target retirement age at any time in the future.

What does this mean for you?

Royal London has agreed to reduce your AMC with effect from June 2015 onwards in two ways:

• to 0.62% for all monthly or single contributions
• to 0.60% for any transferred-in funds from other pension schemes you may have elsewhere

For regular contributions, over the lifetime of your pension fund, you will save over 15% on the management charges previously agreed (and that was already a good rate).

If you have any queries regarding the above, as always, please don’t hesitate to get in touch with Chris or Edward, who can be reached by email to chris@pattersonmills.com and edward@pattersonmills.com