Reduced overall service charge once your fund value reaches £250,000

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If you have £250,000 or more in total fund assets, you’ll see a reduced annual percentage service charge.

This means that the actual service charge you’d pay is effectively the same as if it was calculated on any funds up to the value of £250,000. Any funds above £250,000 aren’t included in the calculation. So you’d not be paying any extra in charges*.

There are no changes to the charging structure for amounts below £250,000. This benefit would apply proportionately across your total fund assets, including pension and investment pots within Aegon Retirement Choices (ARC)**.

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.

*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 charge for funds of £250,000 or over will remain the same, as long as the total fund value stays above that amount.

If you qualify then you’ll see any relevant changes to your service charges in your next half yearly statement.

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

**Reduction in administration charge only. Other charges e.g. investment charges will remain the same. Only applies to ARC product wrappers.