AMC (Annual Management Charge)
The yearly percentage fee a pension provider charges for managing your pension pot. It's deducted from your fund value, not billed separately.
The AMC is the headline number most providers quote when you ask what they charge. It covers platform costs, administration, and customer service. However, the AMC is NOT the total cost — you also pay fund-level charges (the OCF or TER) on top, which cover the investment manager's fees. Your true cost is AMC + OCF combined.
Workplace pension defaults are capped at 0.75% AMC by the FCA. Low-cost SIPPs charge 0.15-0.25%. Older personal pensions sold before 2012 can charge 1.5% or more. The compounding impact of even small AMC differences is dramatic over decades — a 1% difference on a £100,000 pot costs roughly £35,000 over 25 years.
If your pot is £50,000 and the AMC is 0.5%, you pay £250/year. At 1.5%, you pay £750/year — £500 more, every year, compounding.
This calculator provides estimates based on 2025/26 tax rates and is not financial advice. Scottish taxpayers are subject to different income tax rates and bands. The calculations assume your salary is your only source of income and do not account for benefits in kind or other taxable income.
For personalised guidance on your pension contributions, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.