Pension fees on a £750,000 pot — the optimisation pot.
What do pension fees cost on a £750,000 pension pot? See why platform choice becomes the single most important fee decision for larger pots.
At £750,000 you're well into the top decile of UK pension wealth. A 1% annual fee on this pot is £7,500 — around the cost of a family holiday, every year, compounding. Over 20 years that's roughly £225,000 in foregone growth versus a 0.3% provider. The good news is that pots of this size can usually negotiate institutional pricing or move onto flat-fee platforms where the effective rate is well below 0.1%. The bad news is that very few savers ever do this — most stay on whatever scheme their current employer set up, paying 0.5%-1% indefinitely. If your pot is approaching this size, the single highest-leverage hour you could spend on your finances is shopping for a flat-fee platform.