If you have worked in a job with a retirement fund you are probably aware of the fund manager’s compensation structure as it is the one they all follow. It is usually the same for the best-known fund manager.
The main point is that the manager is paid a fee for managing the investment fund as long as management is performed by them.
This is also the arrangement until the fund runs out of money, at this point an immediate sale of the assets to pay the fund owner plus expenses happens. The fund owner can keep the amount they have received but if they want to receive more they have to apply again, this is done at a fee of course.
The fund manager will get 1/3 of the first 100,000 received from the sale as a fee if the fund has more then it will be 2/3 of the first 100,000 received. So if the fund has got 300,000 then 100,000 will be 2% of the manager and 30,000 is 1% of the manager.
It is also worth noting that this fee is for managing the fund but not actually investing the money, it is only for fees. The fund owner can still apply for the money themselves.
So we know the basic structure. Now we know the fee structure for the second type of pension plan the Self Invested Personal Pension.
In the first type of pension, it is the pensioner who gets invested money and is not the manager but the pensioner can apply for the manager if they are not sure about which one to apply for.
In the second type of pension, it is pensioners who apply for the manager and it is the manager who applies for the pensioner.
It is the manager who decides whom to apply for and whom to invest the funds in, this means that there is no commission involved and it is purely a case of applying for a pension plan. It is the choice that is made.
If you want to know how much a company can get paid for the manager then you should read the annual report the company posts.
The manager will tell you how many applications were made from the pension plan and how much they have received from the pension plan.
There are lots of reports and materials on the internet that will give you this information.
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