Before you make any kind of decision concerning the application of a private pension plan you should check the different fees and there rates first, because they can have an effect on growth of your pension pot.
You will have to pay a set-up or initial deposit fees at the very start of your pension plan. This is a fee that most pension provider will charge any new customer and ranges from 5%. Look around for the cheapest set-up or arrangement fee when looking for a private pension plan.
The annual administration fee is a percentage which the provider will take off your investment fund or pension pot every year for managing your investment. Charges will vary from pension provider but will probably between 0.5% and 2%, they are only paid once a year for managing your pension fund.
Some pension companies will charge you a commission or introducer fee for setting up the pension plan. This would also be a charge and would be taken out of your pension in the first year. Not all pension providers will charge you commission, banks and building societies do not charge their customers commission.
So with all these different fees taken in the first few years it is really important to get the pension plan that has the lowest charges and fees.
If you want to learn more about how to invest your money for your retirement see our pensions tips and pensions guide.
Compare pensions from top pension providers with our pensions comparison table.
