Company Pension Rip Off?

[Clodbuster]

I've discovered my company pension contribution including the company contribution is charged 1.8% as it is deposited monthly and then my total investment pot is billed 3% annually.
That essentially means I get no benefit from the company contribution (3%) and I am going backwards
Is this to be expected and standard? I'm not sure it is worth doing this.

 

[Frank the Insurance guy]

I've discovered my company pension contribution including the company contribution is charged 1.8% as it is deposited monthly and then my total investment pot is billed 3% annually.
That essentially means I get no benefit from the company contribution (3%) and I am going backwards
Is this to be expected and standard? I'm not sure it is worth doing this.

You are being charged 3% of your 3% contribution (so equivalent of 0.09% of salary?).

 

[Clodbuster]

3% of both mine and the company contribution.

 

[Bobbo]

Are you sure the annual fee isn't 0.3% rather than 3%?

(I say this as the fees for NEST are 1.8% on contributions in and 0.3% annual fee.)

 

[fisicx]

3% of both mine and the company contribution.

The company contributes 3% of your salary. The management company charges 3% of the contribution.

It’s all explained on the annual statement you receive.

 

[DontAsk]

I've discovered my company pension contribution including the company contribution is charged 1.8% as it is deposited monthly and then my total investment pot is billed 3% annually.

That is an outrageous annual charge, if correct. Like others, I suspect you have got this wrong somewhere. Who is the pension with?

That essentially means I get no benefit from the company contribution (3%) and I am going backwards

You should be gaining form growth in the fund. For an annual charge of 3% I would expect them to have good fund managers and stellar growth.

Is this to be expected and standard? I'm not sure it is worth doing this.

No, and no. My employers company scheme (large multi-national), made no charges on deposit and charged less than 0.5% annually.

 

[Karimbo]

Arent SIPPs the lowest for fees? You basically pick where the money is invested and the fees are the least on there.

 

[Clodbuster]

Are you sure the annual fee isn't 0.3% rather than 3%?

(I say this as the fees for NEST are 1.8% on contributions in and 0.3% annual fee.)

Sorry everyone, I'm getting old and you are correct. I went back and the .3% I did not notice - reading it as 3%. Apologies for jumping to conclusions.
Thanx for correcting me. Panic averted.

 

[DontAsk]

Sorry everyone, I'm getting old and you are correct. I went back and the .3% I did not notice - reading it as 3%. Apologies for jumping to conclusions.
Thanx for correcting me. Panic averted.

I still think a 1.8% deposit fee is outrageous.

 

[pentel]

I still think a 1.8% deposit fee is outrageous.

Cheaper over time if the annual management fee is 0.3% instead of 0.5%.

Nest funds are far from the best out there however.