Flexible income – Our easy investment option

Our charges cover both the investment and running costs of your pension.

We don't charge extra for:

  • Setting up or closing your pension
  • Transferring in pensions
  • Taking your tax free cash (unlimited online, annually by phone)
  • Taking taxable lump sums (unlimited online, annually by phone)
  • Setting up or changing regular income instructions (unlimited online, annually by phone)
  • Resetting your Standard Life Active Retirement pots

Our total annual fund charge

We'll charge you for investing in a fund. The total annual fund charge is made up of the annual management charge plus any additional expenses which apply.

  • Annual management charge

    A charge applies to money invested in funds to cover the costs of running them. This is known as the annual management charge (AMC) and is shown as an annual rate. However, the AMC is deducted from each fund on a daily basis, which has the effect of reducing its unit price. The AMC is also sometimes referred to as the fund management charge (FMC).
  • Additional expenses

    Additional expenses may be deducted from some funds. They include items such as custodian, third party administration, trustee, registrar, auditor and regulator fees. Where a fund invests in other underlying funds, they may also include the underlying management charges. As the additional expenses relate to expenses incurred during the fund management process, they will regularly increase and decrease as a percentage of the fund, sometimes significantly. The additional expenses figure shown is the annual rate of the charge. Where additional expenses apply, they are taken into account when the fund's unit price is calculated each day. If a performance fee applies to a fund, it is included in the additional expenses figure retrospectively.

Service charge

The service charge is taken monthly and covers:

- our investment experts choosing the funds in each of the pots for you, and regularly reviewing them to make sure they're still doing what they set out to do
- managing the initial split of your money across the pots, depending on how you plan to withdraw it
- managing your withdrawals to make sure your money is taken from the right pot
- providing you with ongoing communications and support so you can decide if Standard Life Active Retirement continues to reflect your investment goals and needs throughout your retirement

It varies depending on how much you have in your pension when you first invest in Standard Life Active Retirement:

Fund sizeService charge
£0 - £24,999 0.40%
£25,000 - £249,999 0.30%
£250,000 - £499,999 0.20%
£500,000 + 0.10%

Let's look at an example of how the charges work

You have £50,000 remaining in your pot after taking your tax-free cash and you plan to invest the rest so you can take an income over 20 years.

The table below shows how we would split your money across the pots and the charges that would apply to each pot.

In this case:
- the service charge would be 0.30%, and
- the average effective charge (overall charge) would be 1.37%

Standard Life Active Retirement Total annual fund charge Large fund discount (plan value of £25,000 to £250,000) Effective total annual charge
Pot 1 - £7,500 1.01% 0.30% 0.71%
Pot 2 - £10,000 1.53% 0.30% 1.23%
Pot 3 - £32,500 1.40% 0.30% 1.10%

Charges shown are correct as at August 2016.

Your charges will change as you move through the pots, to reflect the amount you have in each.

The table above is only an example at a particular point in time and is based on a sample split between the three pots. Further discounts may apply - see table below. If you choose our easy investment option we’ll send you a personal illustration showing your exact charges and discounts.

Discounts to our fund charges

While the value of your pension exceeds the below amounts, we'll add money to your pension as a discount to fund charges.

Plan value less cash on depositDiscount %
Under £25,000 None
£25,000 - £249,999 0.3% a year
£250,000 - £499,999 0.4% a year
£500,000 + 0.5% a year

These discounts don’t apply to all funds. For more information have a look at our fund and charges guide.

Overall charge

This includes the total annual fund charges minus any discount which applies, plus the service charge. Our charges cover both the investment and running costs of your pension.

Your overall charge will vary depending on how much money you have in each pot.


These charges are not guaranteed. They are regularly reviewed and may change in the future.

fund and charges guidePlease read the full details of all charges, reductions to charges and terms in the

 fund and charges guide

Remember, as with any investment, the value of your funds can go up or down, and may be worth less than you paid in.

Laws and tax rules may change in the future. The information here is based on our understanding in April 2017. Your personal circumstances also have an impact on tax treatment.

Looking for more investment choice in retirement?

Take a look at Flexible income - our DIY investment option.

Don’t have a pension with us?

Apply for a Personal Pension

Or call us on 0800 032 8610

Already have a pension with us?


Or call us on 0800 032 8610

Were you able to find the information you were looking for on our site?Yes No

Please note: The survey won’t be used to respond to individual customer queries. Please refer to our Contact us page if you have a question.

Send I've got nothing else to say

Thank you for your comments.