The People’s Pension has given back more than £1m a month to its members in rebates on its annual management charge.
The People’s Pension has given back more than £12.5m to its members in total, a figure set to grow along with individual pots. Current members of the structure will receive an estimated £34.5m a year in five years’ time.
Its charging structure includes an annual charge of £2.50, a management charge of 0.5 per cent of the value of a member’s pension pot each year and a rebate on the management charge which is between 0.1 per cent on savings over £3,000 and 0.3 per cent on savings over £50,000.
The charging structure was introduced last year to reward savers and help deal with the increasing number of inactive smalls pots due to auto-enrolment. But the government has proposed the introduction of a universal charging structure which could see the end of rebates with combination and graduated charging structures.
B&CE Group CEO Patrick Heath-Lay says: “As the UK’s largest independent master trust, we have a responsibility to do what’s best for our five million members. This charging structure rewards our members for saving more by using our profits to directly benefit them and improve their chance of a better retirement.
“As automatic enrolment matures, the number of people benefiting from this as well as the total size of the rebate we pay out will grow considerably and could help members to save thousands more towards their futures.”