Pension fund figure v.s amount paid in

It is daft isn't it? presumably also their investments have not done very well.

But when you think about it, if they take 1 or 2% 'management fee' every year for the whole period you are paying in (say 40 years) then they will have taken about half the pot by the time you get your pension.

Robert

You are quite likely to find a lot of the first year goes in commission,

Also the stock market did crash.

If you look at the illustration Fidelity will have given you at outset you will see what the charges are and also how much you could expect in the fund at the end of 1, 2, 3, 4 years - regardless of any commission. I expect the charges are less than 1% but you can find out.

The illustration will be based on a certain fund growth rate (6%). Did your fund make this? Have the values of units actually gone down during this period? Do you know what fund you are in? Why did you choose that fund? Would you be better in another fund? How have these funds done against their peers over the last 10 years?

These are questions that I suggest anyone who has more than a passing interest in their own pensions should be asking.

Rob Graham

I know which funds I'm in. I don't know which funds I should be in :(

In which case you need to do some research or take some advice.

Rob

I think he means that he will only know that after the fact, and no-one, without a time machine, can give him the right answer, other than by luck.

While that's very true, the OP hasn't said whether the charges (which will have been explained to him) are causing the problem or is it just the way the bit of the stockmarket that applies to him has behaved.

Rob