Why is there a new charges section in my statement?

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We’ve created new sections in your statement to show you the main charges, and any rebates, in monetary figures, so you'll now see these as £s and pence.

From 21 August 2017, the initial implementation of the changes to our systems will be in place. If you have one of the pension products below, the next statement you receive will include the new charges section.

  • Group Personal Pension plan;
  • Group Self-invested Personal Pension plan;
  • Group Stakeholder Policy;
  • Individual Personal Pension plan;
  • Flexible Personal Pension plan, or
  • Stakeholder Policy.

There is a new total in the Summary section, showing the amount of charges and rebates, if any, that have applied to your pension plan over the statement period.

We also created a new breakdown section later on in the statement, to tell you the types of charges and rebates, if any, that applied and the amount of each.

We're always looking at ways to improve our customer communications. These changes are in line with the guidance from the Financial Conduct Authority (FCA) to improve transparency of pension charges across the industry.

No – we’ve created the new sections to give you more information about your pension plan. You don’t need to do anything.

Yes - the charges and rebates, if any, are reflected in your plan value.

You should have received a document called a plan or a policy schedule when you took out your pension – this will have further information on the charges and rebates that apply to your pension plan.

You may be able to view your pension plan online to look at charges, rebates and how your plan is doing. Go to our login page to register for our online services.

The descriptions below explain the different types of charges at Aegon.

Not all of these charges will apply to you. It can depend on the type of plan you have and when you first opened it.

You should look at your plan/policy schedule for further information on the charges that apply to your pension plan.

Annual management charge (AMC)
This is the yearly charge to cover the costs to pay the fund manager for managing your funds. This will include any additional fund expenses or charges that may apply to certain funds. Find out more about AMC.

Establishment charge
Is a charge to cover the cost of commission being paid to an adviser. This is taken from your fund value.

Explicit fund related commission
This charge pays for commission on funds you're invested in. This is taken from your fund value.

Initial charge
Is a charge to cover the cost of commission being paid to an adviser. This is deducted from the payments made to your plan before they're invested in funds, rather than from your fund value.

Paid-up charge
This is a yearly fee that is applied if your plan has been paid-up, for example you've stopped making contributions.

Plan fee
This is a charge incurred by us to cover the ongoing administration of your plan, for example to cover the cost of:

  • investment performance;
  • administering tax to ensure tax efficiency;
  • communication, explanation, and insight into the value of your pension. For example quotes, illustrations, statements, general enquiries, communication materials including website;
  • ensuring products continue to deliver, and remain compliant with regulation and legislation;
  • general policy administration, for example accepting and investing contributions, administering changes to your policy or your personal details; and
  • staffing and property costs.

Depending on the type of plan you have, it may also be referred to as a plan charge, policy charge or policy fee. 

The descriptions below explain the different types of rebates at Aegon.

Not all of these rebates will apply to you. It can depend on the type of plan you have and when you first opened it.

You should look at your plan/policy schedule for further information on the rebates that apply to your pension plan.

Fund bonus
One of the features of a plan is a fund bonus which will, if sufficient contributions have been made, be payable at the end of either year 10 or year 11 (or earlier if applicable). The level may increase as more contributions are paid.

Fund charge rebate
Depending on the type of plan you have this is either a yearly or monthly rebate applied to a plan. In the Charges section of the statement we've shown the fund charge rebate amount over the statement period.

Fund value rebate
Depending on the plan you have, this rebate is either applied yearly to the plan when the plan value is more than £50,000, or applied monthly to the plan when certain conditions are met. In the Charges section, the rebate amount is shown over the statement period.

Member credit
This is a credit applied to your plan if commission was given up by an adviser.

We can only show the monetary amount of what has applied over the statement period. We don’t take into account future charges or rebates because your circumstances could change in the next year.

For example you may change the type of funds you’re invested in, consolidate your pension or start to take benefits.

We can only show plan charges, and any rebates, as monetary amounts if the statement period start date is on or after 15 August 2014. If you’d like to see a breakdown of the plan charges, please request a copy of your statement after this date.

If within the statement period the total rebates are more than the total charges, the credit amount will be included in your plan value.

Yes - we only show ongoing administration and fund related charges.

We believe your pension plan is a long term solution to help towards your retirement. The following haven't been included:

  • Surrender charge – if you leave your pension before you retire, this would be reflected in your transfer value.
  • Adjustments – sometimes we need to make adjustments. You should receive a letter explaining if any adjustments have been applied to your plan.
  • Switch charge - there may be a limit on the number of switches you can carry out in a year. We would normally make the switch without applying any charge. You can find information in your policy conditions.

We haven’t taken this into account in the charges table.

If you’ve invested in our with-profits fund (other than New Generation With-Profits) the overall return you can make on this investment includes a deduction for the cost of the guarantees in the fund as a whole. This deduction, which can vary, is typically 0.5% each year. As an example, if your fair share of the with-profits fund is £50,000, the deduction for the cost of guarantees would be £250.

We expect the bonus paid from the distribution of surplus assets in the fund (known as the 'estate') will be greater than the amount deducted towards covering the cost of guarantees (effectively refunding the deductions made). The level of estate distribution isn’t certain and in some circumstances could be less than the amounts deducted for guarantee costs. Our factsheets detail the current deductions for guarantee costs and estate distributions.

The combined effect of the deduction for the cost of guarantees and the distributions from the estate are included in your total plan value.

If you have an indivudal Aegon Retirement Choices (ARC) product, please look at the ARC charges guide. If you have an ARC workplace product please refer to the FAQ 'What are the charges that are applied to my workplace retirement savings on Aegon Retirement Choices?'