How to make the most of a valuable government incentive
When we talk about pensions, most people focus on contributions and investment returns — but charges often get overlooked. Even a small percentage difference in annual fees can have a huge impact over decades.
Example:
If you have £150,000 in your pension pot and it grows at 5% a year, a 1% annual fee difference could mean over £30,000 less in 20 years.
Why it matters:
- Fees are deducted regardless of market performance.
- They compound in reverse — eating into your long-term returns.
- Lower-cost options may be available without compromising on quality.
Action step: Ask for a pension charges review. You may be able to switch to a more cost-effective arrangement and boost your retirement fund without paying in more.
