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
  • Taking taxable lump sums
  • Setting up or changing regular income instructions
  • Resetting your Standard Life Active Retirement pots

How much you pay in charges depends on the amount you have in each of the Standard Life Active Retirement pots and the value of your plan when you first invest. If you take all your tax free cash and invest the rest, we split your money over the pots in the following proportions:
• Pot 1 – 15%
• Pot 2 – 20%
• Pot 3 – 65%
Based on the split above and the value of your plan when you first invest, here’s an example of what you could pay in charges. You should check your personal illustration to see your exact charges and discounts.

Plan value Overall charge The overall charge is made up of:
  Combined total annual fund charges of the potsPLUS service chargeMINUS large fund discount
£0-24,999 1.78% 1.38% 0.40% None
£25,000-249,000 1.38% 1.38% 0.30% 0.30%
£250,000-499,999 1.18% 1.38% 0.20% 0.40%
£500,000+ 0.98% 1.38% 0.10% 0.50%

Charges correct as at October 2017.

Charges are not guaranteed and may change in the future.

Charges and discounts explained

Overall charge

This is made up of:

• the combined total annual fund charges for the pots in the proportion you’re invested in them

plus a service charge

minus any large fund discount which applies.

As already mentioned, your overall charge will vary depending on how much money you have in each pot.

Total annual fund charge

This is the charge for each of the pots. It’s made up of a fund management charge (FMC) plus any additional expenses which apply.


This covers the costs of running the pots. It’s shown as an annual rate, but it’s deducted from each pot daily, which has the effect of reducing the unit price associated with each pot. The FMC is also sometimes referred to as the annual management charge (AMC).

• Additional expenses

Additional expenses may also be deducted from the pots. They include items such as custodian, third party administration, trustee, registrar, auditor and regulator fees. Where the pots invest in other underlying funds, they may also include the management charges for these funds. As additional expenses relate to expenses incurred during the fund management process, they’ll regularly increase and decrease as a percentage of each pot, sometimes significantly. The additional expenses figure shown is an annual rate, but where additional expenses apply, they’re taken into account when the pots’ unit prices are calculated each day.

As at October 2017, the total annual fund charges for each of the pots are:

• Pot 1 – 1.01%

• Pot 2 – 1.53%

• Pot 3 – 1.42%

Service charge

The service charge that applies depends on the value of your plan when you first invest in Standard Life Active Retirement. It 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

The service charge will no longer apply if you move your money from Standard Life Active Retirement to another investment option.

Large fund discount

We apply a large fund discount while the value of your plan is £25,000 or more. It has the effect of reducing the overall charge you pay.

How do you apply charges and the large fund discount?

We adjust the value of your plan to reflect the charges and discount that apply. We deduct the FMC and additional expenses from your plan each day, and the service charge each month. We apply the large fund discount each month.

For more information about how we apply charges and discounts, see our terms and conditions.


Charges are not guaranteed. They are regularly reviewed and can be changed.

fund and charges guidePlease read the following guides for full details about charges, reductions to charges, and terms and conditions

 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 2018. 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