Regular Premiums into an Individual Stakeholder Pension

Ben Smith is aged 25 and has just started a new job. His dad told him to sort out a pension so he has decided to make contributions of £50 per month (gross) into an Individual Stakeholder Pension. It is 3% of his salary which is all he can afford just now.

At a growth rate of 7% per annum Ben’s final pension fund value at age 65 would be:

With Well Money Clinic on nil commission

£104,000

Through a commission based adviser, there would be commissions payable and a higher product charge. At a growth rate of 7% per annum Ben’s final pension fund value at age 65 would be:

With a commission-based advisor (using a 1.00% Annual Management Charge)

£98,380

Notes: through Well Money Clinic there is a fixed fee of £200, and the pension is arranged on NIL commission terms. In the example for a commission based adviser, to give a like for like comparison we have added the cost of our fee as a single premium of £200 net (i.e. £250 gross). This case study is based upon actual product illustrations acquired in March 2009 from a leading product provider.

In this example, Well Money Clinic’s fixed fee service will give you more money in your pension pot when you retire than with a commission based adviser.

 

Regular Premiums into an Individual Stakeholder Pension

Andy Jones is aged 45 and self-employed. He wants to increase his provision for retirement and has started paying £200 per month (gross) into an Individual Stakeholder Pension.

At a growth rate of 7% per annum Andy’s final pension fund value at age 65 would be:

With Well Money Clinic on nil commission

£117,000

Through a commission based adviser, there would be commissions payable and a higher product charge. At a growth rate of 7% per annum Andy’s final pension fund value at age 65 would be:

With a commission-based advisor (using a 1.00% Annual Management Charge)

£113,780

Notes: through Well Money Clinic there is a fixed fee of £200, and the pension is arranged on NIL commission terms. In the example for a commission based adviser, to give a like for like comparison we have added the cost of our fee as a single premium of £200 net (i.e. £250 gross). This case study is based upon actual product illustrations acquired in March 2009 from a leading product provider.

In this example, Well Money Clinic’s fixed fee service will give you more money in your pension pot when you retire than with a commission based adviser.

 

Single Transfer into an Individual Stakeholder Pension

Jenny Wells is aged 50 and is worried her existing pension pot is not growing as well as it should because of high product charges. She decides to transfers a fund worth £50,000 into an Individual Stakeholder Pension.

At a growth rate of 7% per annum Jenny’s final pension fund value at age 65 would be:

With Well Money Clinic on nil commission

£127,000

Through a commission based adviser, there would be commissions payable and a higher product charge. At a growth rate of 7% per annum Jenny’s final pension fund value at age 65 would be:

With a commission-based advisor (using a 1.00% Annual Management Charge)

£122,620

Notes: through Well Money Clinic there is a fixed fee of £550, and the pension transfer is arranged on NIL commission terms. In the example for a commission based adviser, to give a like for like comparison we have added the cost of our fee as a single premium of £550 net (i.e. £687.50 gross). This case study is based upon actual product illustrations acquired in March 2009 from a leading product provider.

In this example, Well Money Clinic’s fixed fee service will give you more money in your pension pot when you retire than with a commission based adviser.