Are You Overpaying on Pension Fees? Here’s How to Find Out and Save Thousands
Overpaying fees on your pension will impact your retirement. No one manages your pension for free, but ignoring the fees you’re paying can significantly impact the value of your pension and, ultimately, your retirement lifestyle.
A Real-Life Example of Pension Fee Overhaul
Recently, I worked with a client who did the right thing back in 2006 by setting up a company pension as a company director. At the time, the fees and charges weren’t a top concern—after all, the pension balance was zero on day one. So, a 1.85% Annual Management Charge (AMC) and a monthly plan fee seemed insignificant.
Fast forward to today, and this client’s pension has grown to over €380,000. However, that same 1.85% AMC and monthly plan fee were still in place, silently eroding the value of their pension year after year.
When Was the Last Time You Reviewed Your Pension?
Here’s the shocking part: the last time this client heard from the pension company was in 2006—the year the plan was set up. That’s almost 18 years without a single follow-up call.
The pension market has evolved significantly since 2006, offering more competitive options. After reviewing the client’s plan, we decided to move the pension to a new provider. The result? The client is now paying just 1% AMC, saving €3,200 in fees every single year. This isn’t a one-time saving; it’s a recurring reduction that will continue to benefit them for years to come.
Wouldn’t you rather spend that money on a luxury cruise than on unnecessary fees to a pension provider that hasn’t contacted you in nearly two decades?
Take Action: Review Your Pension Today
If you have a pension you’re contributing to and haven’t heard from anyone in a while, it’s time to take action. Drop me an email, and I’ll review your plan to see if better value is available—all at no charge and with no obligation.
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Contact Ferris Financial Planning today to ensure you’re not overpaying on pension fees and to maximize your retirement savings.
