- Joining the pension
Get the most from your pension
- Use the tools
- Boost your pension
- Approaching retirement
- Payment options
- Investment choices
- Common questions
What are the charges?
What does it cost?
When you have a pension there are charges for investing in funds. These charges cover the cost of managing your investments.
The amount you will be charged depends on the investments you choose. The charges and any rebates which apply to each investment option are explained in the Becoming a member of the Telefónica Pension Plan (PDF, 771KB).
Charges are regularly reviewed and may be increased to reflect increases in overall costs and/or changes in the assumptions made. Any increases will be fair and reasonable.
Telefónica have negotiated a discount, which means that Standard Life will rebate a percentage of the fund management charge and additional expenses by adding extra units to your fund each month. Please see Becoming a member of the Telefónica UK Pension Plan (PDF, 771KB) for more information.
If you leave the company, then any scheme rebates will remain.
Types of charges
Fund management charge
The fund management charge (FMC) is a charge for managing your pension and investments. The charge is built into the unit price of each fund your pension invests in and is deducted daily. Please see Becoming a member of the Telefónica Pension Plan (PDF, 771KB) for more details about the FMC on the available funds.
Even if you stop making contributions into your fund, you'll still be charged the FMC because the money you've invested will still be under management.
Additional expenses may be deducted from some funds. They include items such as Trustees’, registrars’, auditors’ and regulators’ fees. And, where a fund invests in other underlying funds, they may include their underlying management charges.
The additional expenses relate to expenses incurred during the fund management process, so they will regularly increase and decrease as a percentage of the fund, sometimes significantly. Where expenses arise within a fund they have been taken into account in the calculation of the price.
Additional expense figures may be rounded to two decimal places. An additional expense charge may apply but if it's rounded to two decimal places it may show as 0.00%.
Additional expenses are not guaranteed. They are regularly reviewed and may be changed in the future.
Effective total annual fund charge
This is the FMC, plus any additional expenses which apply, minus any plan rebate which applies.
For example, if you invest in a fund with an FMC of 1.00%, additional expenses of 0.01% and a rebate of 0.68%, this will give an effective total annual fund charge of 0.33%.
There may also be charges for switching funds.
Cost of advice
If you decide to get financial advice from an independent financial adviser, then there may be a charge for this. You'll be able to find out more about this from your financial adviser.
To help you make an informed decision we've provided you with important information that you should read. You should print or save copies of these documents for future reference.
This document explains the features of the pension product your employer has chosen.
Read this guide for more information on all your investment options, including details about charges and fund codes.
Read this guide for more information on the different ways you can pay into your pension, and the tax benefits and tax charges which can apply.