Pension fees on a £2,000,000 pot — the very-high-net-worth pension fee question.
How much do pension fees cost on a £2 million pension pot? See the case for flat-fee platforms, institutional pricing, and dedicated wealth management.
Pension pots of £2 million are rare — under 1% of UK savers ever reach this level — but the people who do are usually high earners who hit the annual allowance every year for decades. At this scale, fees of 1% are £20,000 a year, which is comfortably above the average UK after-tax salary. Over 15 years to retirement, that's £300,000-400,000 of lost compound growth. At this level you have real options: institutional pricing on flat-fee platforms (often £300-500/year), bundled wealth management for around 0.5% all-in, or self-directed investing on a £200/year SIPP. Note that pots above the £268,275 lump sum allowance lose access to some of the tax-free cash benefits — worth modelling carefully with an FCA-regulated adviser before drawdown decisions.