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Time to Give your Pensions a Wash?

"I looked at the UK investment market and thought it could do with a shake-up."

Tom Russell InvestSmart

Thursday 1st January 1970

Time to Give your Pensions a Wash?

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At InvestSmart our focus is on rebating commission to clients, but sometimes that's just not possible.


Standard Life, for example, has recently switched off the trail commission on their book of pensions. It's a saving for them, but not one they have decided to pass on to customers. They appear to have decided to keep the commission for themselves.

That is not the end for an InvestSmart client. If a commission rebate is not possible we will look to see if we can move the pension into a commission free contract. This is known in the InvestSmart office as 'washing' the plan.

One client was paying 1.3% in annual fund charges to Standard Life, amounting to almost £1,250 a year. A commission free plan in similar funds with another provider had charges of just 0.45%. InvestSmart's annual charge, which includes our regular reviews, was 0.25%. So the total saving for the client was 0.6% or £550 a year. Over the lifetime of the plan the client will save thousands of pounds which will help to boost his retirement.

Is it time to give your pension a wash? Contact us today.