How much will I be charged?
The annual management charge (AMC) on your Royal London Stocks and Shares ISA will be applied in the same way as it is for your Royal London workplace pension.
This means if you choose the same investment option for your ISA as your pension - such as from our Governed Range - you'll pay the same charge for your ISA. This charge is fixed and will never change, even if you switch employers.
Our AMC is calculated as a percentage of your total investment and is deducted monthly from your plan each month so there's nothing you need to do.
It's important to note that if your ISA is invested in a different option to your pension, your charge may vary.
Example of our charge
To give you an idea of how our charges will work for a workplace pension customer, let's introduce you to David.
- David is a Royal London workplace pension customer and his pension is invested in the Governed Range.
- He takes out our Stocks and Shares ISA and pays in £10,000 as a single contribution.
- He chooses to invest his ISA in one of the Governed Portfolios, part of the same Governed Range as his pension.
- The AMC on his pension is 0.50%, therefore the AMC on his ISA will be the same.
David invests £10,000
into his Stocks and Shares ISA.
Our AMC= 0.50%
This is an example charge.
Our total charge = £4.16 per month*
This is taken automatically from his plan.
* This is only an example. Your actual charge will depend on the AMC that applies to your workplace pension, the value of your plan and the investment option you choose.
Impact of charges over time
To show how charges can affect investment growth over time, we’ve compared David’s AMC of 0.50% he gets with Royal London with a higher example charge of 1.00%.
The table below shows how these charges impact the value of David’s £10,000 ISA investment over time, assuming a consistent 5% annual growth rate.
This example is for illustrative purposes only and inflation has not been taken into account. Remember, investment returns are not guaranteed, and the value of your investments can go down as well as up and you could get back less than you paid in.
| Term (years) | 1% AMC | 0.50% AMC | Difference |
| 1 | £10,395 | £10,447 | £52 |
| 3 | £11,232 | £11,402 | £170 |
| 5 | £12,137 | £12,444 | £307 |
| 10 | £14,731 | £15,487 | £756 |
As shown, after 10 years, David’s ISA would be worth £756 more with the lower 0.50% AMC than with the 1.00% charge. This difference builds up over time because the lower charge allows more of the investment to stay invested and benefit from growth each year.
How can I find out my charge?
You can find out your charge by checking your pension plan details in our mobile app - just follow the following steps:
- Log in to the app.
- Tap on the 'Growth' section.
- You'll see your charge listed next to 'Plan charge %.
If you choose the same investment option for your ISA, your charge should be the same.
You can also find your charge in your latest annual pension statement, which you may have received by post. You can also download it by logging in to our online service.