Reduced overall service charge

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When your fund value reaches a certain level known as the service cap, you'll see a reduction in the overall service charge being paid. This is because you only pay a service charge on any amount below your service charge cap.

The level of your service cap will be agreed with your employer and will be detailed in your personal illustration.

The graph below shows the total amount in your pension pot increasing. But you'll see that your total service charge is fixed when your pot reaches a level agreed with your employer. So when your pot reaches this level (the service charge cap), there's no extra charges.

This graph shows how the service charge is applied proportionately across your total fund assets and calculated as an annual charge. The higher the fund value, the less the overall percentage charge is in relation to the fund size. However the monetary charge for funds of £250,000 or over will remain the same, as long as the total fund value stays above that amount.

How we calculate the annual charge

Using the charging band(s) applied to the relevant fund(s), we calculate an annual charge. How much is paid will vary depending on the value of the overall assets. The higher the fund value, the less the overall percentage charge is in relation to the fund size. However, the monetary charges for funds over your agreed service charge cap will remain the same, it will not increase.

See our website for further information on what charges are applied to your workplace savings.

The service charge cap is a reduction in the administration charge only. Other charges, for example the investment charges and advisor charges will remain the same. This information applies to Aegon Retirement Choice products (ARC).