Full-Service Proposition Costs & Charges Explained
In the example below a client has agreed to transfer an existing pension policy valued at £100,000.000 to a new plan with a full-service proposition in July 2020.
Below are the initial and on-going service costs. The tables under the heading Aggregated costs and charges as at 01/07/2020 detail the full cost of the advice, on-going service, platform charges, fund charges and transactional charges of the underlying funds in the first year of investment.
A Risk Level 4 (Moderate) Portfolio has been used to determine the fund costs with an annual growth assumption of 4.90%.
£900.00 fee for initial planning and implementation.
1.00% annual fee which is taken monthly in arrears from your plan (0.833% per month based on the value of your investment).
Reviews and Updates
Annual review and meeting with your Financial Adviser to discuss your plan, your current circumstances and risk levels.
Regular updates and investment portfolio fund rebalancing if market sentiment changes.
Aggregated costs and charges as at 1/7/2020
We want you to understand the various costs and charges that are associated with our services and recommended solutions, along with the effect that these may have on what your plans return to you. In the table below we have provided some information on all costs and charges that could apply over the next twelve months. We have also included an indication on the overall effect of these costs and charges on returns over this period.
The table below details the charges applying:
The table below shows the cumulative effect of costs on return: