We use cookies to give you the best possible online experience. If you continue, we’ll assume you are happy for your web browser to receive all cookies from our website. See our cookie policy for more information on cookies and how to manage them.


Workplace pension charges

Share this article

EX03109 05/2018

If you have a workplace pension, your employer negotiates the charges on your behalf.

Every workplace pension must have a default fund and the government has set a maximum charge of 0.75% of your fund each year. This charge cap applies only to the default fund in workplace pensions into which employees are automatically enrolled.

 Alternatively, some workplace pension schemes, such as the government’s Nest scheme have a dual charge – in Nest’s case 1.8% of every regular payment in plus 0.3% of the fund each year. Nest says that this is equivalent to about 0.5% on average. The charge covers everything – administration and investment and there are no exit charges.

Many employers have negotiated charges less than the 0.75% charge cap, and employees will typically pay between 0.45% and 0.5% a year on average if they invest in the default fund.

Although you can’t control workplace pension charges, some employers have a forum or committee that considers issues such as value for money, so you may be able to make your voice heard.

All workplace pensions also have either a board of trustees or an independent governance committee. These boards and committees are there to look after your best interests, including whether the charges represent good value for money.

As well as the default fund, workplace pensions usually provide a range of other funds into which you can invest your savings, but these may be more expensive than the default fund.

Using your pension money

Retirement on the horizon? Find out what your options are.

My Retirement Planner

Use our tool to find out what your pension might be worth when you retire.


Already have a pension with Aviva? Monitor it online at the touch of a button with MyAviva.

Back to top