Behind the scenes

The how and why behind our example illustrations

These example illustrations show you the possible impact that costs and charges may have on your pension savings if you stay invested in the scheme.

The Trustee(s) have produced these illustrations in line with February 2018 guidance from the Department for Work & Pensions to help members understand the costs and charges that apply to their pensions savings.


The Trustee(s) chose example scenarios which broadly represent its members, looking at age, current pension savings, the different funds members are invested in and the different charges involved.

When looking at the level of costs and charges met by members we take into account the following:

A charge

This includes the Annual Management Charge (‘AMC’) that is deducted from funds to cover the management costs and additional expenses incurred in running the funds. Together with the AMC this is known as the Total Expense Ratio (‘TER’).

A transaction cost

This includes day-to-day fund expenses incurred within the fund as a result of buying, selling, lending or borrowing of investments. It includes explicit costs (such as taxes, fees and commissions) and implicit costs (such as market timing) which are separate from quoted TERs.


The way transaction costs are calculated may mean they are negative, which would reduce the total amount you pay to invest in a fund.

Lady taking a picture with a camera on top of a rock
People walking in the snow

For each scenario, we show how an example person’s pension savings may grow over time if they stay in the scheme and their pension savings continue to be invested.

We take into account how we expect each fund to grow.


We calculate two figures:


  • one figure based on the fund charging to invest and look after your pension savings;
  • another figure based on the fund not charging to do this.

When we show figures

When projecting pension savings, we show the value in today’s terms, which means we have already taken into account the impact that inflation may have on the buying power of those pension savings. Some funds may not be expected to grow as much as inflation and so the buying power of those pension savings would be expected to go down over time.


Inflation is assumed to be 2.5% each year.


As the scheme is closed to new contributions, these illustrations assume no further contributions will be paid.


Values shown are estimates and are not guaranteed.


The expected growth rates and charges assumed are those set out in the Behind the scenes section.

Below are the different funds and the investment return and charges we’ve assumed in our example scenarios. A list of the funds available in the scheme and their charges can be found in the What funds are available page.

Fund/Strategy NameAssumed investment growth above inflation, before chargesCosts and charges paid by membersWhy have we used this fund in our examples?
The Exempli adventurous fund3.00%0.50%This is the fund with the highest assumed investment return before charges.
The Exempli balanced fund1.00%0.50%This is the most popular fund.
The Exempli cautious fund0.00%0.50%This is the fund with the lowest assumed investment return before charges.
The Exempli annuity fund0.00%0.25%This is the fund with the lowest cost and charges.
The Exempli drawdown fund1.00%0.75%This is the most expensive fund.

These figures are based on


  • information on charges provided by Provider X.
  • assumptions on how your pensions savings may grow which are in line with those used in the annual benefit statements sent to members.


You should note that Provider X were not able to provide transaction costs and charges for The Exempli adventurous fund due to further development needed on their systems. The standard costs and charges has therefore been given.


The Trustee(s) are working with their advisers and providers to remedy this situation and believe that next year a more comprehensive assessment will be possible.

Funds and example scenarios

Read on to find out more about the funds available and their charges as well as look at the impact the charges may have based on some example scenarios.


Investment performance cannot be guaranteed and fund values can go down as well as up. If you are thinking about changing the fund(s) you are invested in, or would like more guidance around the options available to you, we recommend that you seek advice from an Independent Financial Adviser (IFA).