Transactional 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 transactional proposition service in July 2020. The client has agreed to an annual review at a cost of £360.00 per annum.
Below are the initial and on-going service costs. The tables under the heading Aggregated costs and charges as at 1/7/2020 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%.
£2,000.00 fee for initial planning and implementation.
£360.00 annual fee which is taken annually from your plan.
Reviews and Updates
Annual review via PWS Personal Finance Portal.
No regular updates.
Investment portfolio fund rebalanced at annual portal review.
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: