What are Aviva's pension fees and charges?
Understanding the fees and charges in your pension plan is essential. These costs can impact how much money you’ll have for retirement, so it’s crucial to know what you’re paying and why. Here, we’ll look at Aviva’s fees and how they might affect your pension savings.
What Are Pension Fees?
Pension fees cover the costs of administering your pension, investing your money, and providing member services. Every pension provider has a slightly different fee structure, so understanding these charges can help you make an informed choice.
Aviva’s Fees Explained
Aviva’s workplace pension fees are generally split into two parts:
Administration Charges
A small amount is charged as a percentage of your total pension fund each month for managing and administering your pension.
Transaction Costs
A small percentage fee is charged to cover the costs of buying and selling the investments in your fund.
Because Aviva offers a range of workplace pension schemes, the exact fees you’ll pay depend on the arrangement your employer set up, the fund you’re invested in, and possibly how close you are to retirement. Typically, Aviva’s fees fall within the following bands:
Administration fee: 0.36% – 0.75%
Transaction costs: 0.07% – 0.08%
Total: 0.44% – 0.83%
To find the exact fees for your specific scheme, Aviva provides an online tool where you can enter your policy number: https://www.retirementtools.aviva.co.uk/myfuture/schemecharges/
If you don’t have your policy number to hand, you could check your welcome pack or call Aviva’s customer service team on 0800 158 3142 to request more information.
Impact on Your Pension Savings
Although fees reduce the amount you have in your pension, they also pay for professional fund management and administration, which can help grow your retirement savings over time.
Let’s take an example:
Suppose you have £10,000 in your Aviva workplace pension pot.
If your fees fall around the median in the ranges mentioned (for instance, 0.55% total), you’d pay about £55 per year.
If your fees are at the upper end of 0.83%, that would be £83 per year.
Over time, these differences can add up, which is why it’s vital to know exactly what you’re paying.
Are These Fees Right for You?
When choosing a pension scheme, consider how the fee structure fits with your retirement goals. If you have a large or growing pot, even small percentage differences can make a significant impact over the long term. On the other hand, competitive fees can help your savings go further.
Things to Consider
Before you decide whether your Aviva scheme is the right option, it’s worth comparing its fees, benefits, and any additional services against those of other providers. A little research can go a long way.
Check the flexibility of the scheme (e.g., transferring in or out).
Look at the fund choices and investment performance.
Consider your personal situation and retirement timeline.
Use Aviva’s online tool or contact their team for exact fee details.
Where to Find Out More
For free, impartial information about pensions, including fees, visit MoneyHelper. If you need more tailored guidance, you could consult an independent financial adviser, though be aware there may be a cost for their services.
Historically, the pensions industry has been known for complex, hidden fees. Unfortunately, many providers still make it very difficult to find out exactly what you’re being charged. At Penny, we’re on a mission to make it super-easy to understand and manage your pensions. We bring all your retirement savings into one place and give you clear insights into fees and charges so you can make confident decisions.
