The UK’s largest independent master trust, The People’s Pension1, has given back £50 million to its membership through rebates on its annual management charge (AMC).
It’s nearly four years since the pension scheme, provided by not-for-profit organisation People’s Partnership, introduced its rebate charging structure, which rewards members for saving more over time – between 0.1% on savings over £3,000 and 0.3% on savings over £50,000. This aligns with the organisation’s member-centric approach and highlights the impact that charging can have on a member’s retirement savings.
Currently, The People’s Pension pays back nearly £2 million every month, with this figure only set to increase as individual pots grow. It’s the only independent provider to offer a single pot to its members, regardless of how many times they are enrolled by different employers with a best price guarantee on pension charges.
Patrick Heath-Lay, CEO of People’s Partnership, provider of The People’s Pension, said:
“As an organisation founded for social good and centred around better member outcomes, we’re committed to helping our 6.5 million members build financial foundations for life. Delivering £50 million in rebates in such a short space of time is another example of how we continue to put our members first. We do not believe in the ‘set and forget‘ industry charging practices which erode a member’s pension pot value as their funds grow. As a provider we aim to deliver maximum value back to our members, not shareholders, and we see this as yet another great step towards this.”
People’s Partnership recently outlined its ambition to move from the auto-enrolment space to become a leading workplace pension provider, as it continues to build its proposition with the recent introduction of a new set of retirement planning tools, a financial wellbeing offering, and a member app, which is set to be launched later this year.
Note to editors
- People’s Partnership provides The People’s Pension, the largest independent master trust in the UK, serving more than six million pension savers across the UK and manages more than £24bn in assets. As a business without shareholders, it reinvests its profits with the aim to help customers and achieve better financial outcomes for everyone.
- For a full breakdown of our charging structure visit: https://thepeoplespension.co.uk/member-annual-management-charge/