Charges eroding thousands of £££s from pensions
Alliance Trust Savings, one of the country's leading SIPP providers, has shown that customers could increase the value of their pension at retirement by tens of thousands of pounds simply by reviewing the charges levied by their pension.
As well as providing a greater income at retirement the growth of their pension fund could increase their tax free cash lump sum entitlement by £7,775, based on the projection of a £50,000 transfer over a 25 year term with the Alliance Trust Savings Select SIPP versus competitors that do not pass on commissions to their customers.
Alliance Trust Savings, unlike any other company in the UK, rebates all commissions received from fund providers back to their customers pension fund and as a result their pension pot could be worth a staggering £31,100 more at retirement.
Individuals who transfer their pension fund to the Alliance Trust Savings Select SIPP could increase their pension fund at retirement by benefiting from the unique rebate structure available on funds via the Alliance Trust Savings invest platform.
The Alliance Trust Savings Select SIPP offers access to over 1,200 funds with rebates of up to 0.875%.
The table below provides comparative examples of the effect charges have on the overall value of a pension pot. These figures compare projections of a £50,000 and £100,000 transfer over terms of up to 25 years comparing the Alliance Trust Savings Select SIPP against pension providers that do not pass on commissions to customers.
Steve Latto, head of pensions at Alliance Trust Savings commented: "With the Government introducing increases in the minimum State Pension Age earlier than expected and the tough economic climate making it more difficult for many people to make further pension contributions, it is vital that customers make the best choices when choosing a pension provider. Many people often overlook the charges levied and as a result may be losing thousands of pounds in their retirement. It is more important than ever that people make their pension savings work as hard as possible for them.
"The Alliance Trust Savings Select SIPP offers access to the country's leading funds in addition to other investments such as stocks and shares and, with an annual charge of only £75 + VAT and our unique rebate structure, it could be the ideal pension vehicle for customers looking to maximise their income in retirement."