Pension fee impact

Pension information might seem out of place on this site, but my job is supporting founders and funding retirement is a frequent topic.

I built this calculator to help visualise the impact of fees relating to some common pension types. A percent or two might seem very little, but the impact compounds over time and I wanted a way to visualise this during conversations.

Over 25 years, that “small” difference can cost you six figures. Play with the numbers below. Put in your own situation and see what fees are actually costing you.

Your details

Current age 40

20 60

Retirement age 65

40 80

Existing pot £50k

£0 £1m

Annual contribution £12k

£0 £60k

Market growth (nominal)

Impact by fee tier

Show in today’s money (adjusts for 2.5% inflation)

DIY Index

e.g. VHVG + VFEG on Vanguard 0.28% p.a.

All-in-One Index Fund

e.g. Vanguard LifeStrategy, FTSE Global All Cap 0.35% p.a.

Robo-Adviser

e.g. Wealthify, Nutmeg 0.75% p.a.

IFA + Active Funds

e.g. adviser + HL + active fund OCF 1.25% p.a.

Legacy Managed

e.g. SJP-style wrap + adviser + fund charges 2.00% p.a.

Growth over time

For illustration only, not financial advice. Returns are hypothetical and don’t reflect any specific fund. Past performance doesn’t guarantee future results.

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