We’re waiving our fee during the Coronavirus crisis.

Friday 20th March, 2020

For the next 6 months, we at Penfold have decided to waive our entire fee on all pension balances under £25,000 as a small gesture to our self-employed customers who may be struggling during the Coronavirus crisis.

A message from our Founders:

What a week it’s been. We’d love to say we’ve got all the answers for you right now but, unfortunately, that’s not the case. Like many of you, we’re taking each day as it comes and adapting as needed. All we can say with confidence is that we are doing everything we can do to support your future.

Knowing how tough this time is for everyone, we’ve made the decision to waive our 0.58% admin fee for the next 6 months with effect from 1st March. Whilst we can’t do anything to protect your current situation, we can protect your futures.

Please continue to stay in touch with us and let us know how we can help.

We’re sending good thoughts to you all,

Pete + Chris + Stuart

What is our current fee?

Penfold customers pay a single, all-in, Annual Fee of 0.75% of the amount you have saved in your Penfold Pension. The appropriate proportion is calculated monthly and deducted directly from your pension pot. Simple!

The idea is that the money in your pension is invested sensibly, and over the long term grows by 4-7% per year on average, including any market crashes & downturns along the way. If you look over the last 50+ years this is exactly what has happened. As a result, the money in your pension hopefully grows by far more than the amount that is deducted in fees, so you end up with much more in your pension than you put in. That said, past performance cannot be relied upon as an indicator of future performance, and this is not guaranteed.

The Annual Fee is made up of the following two parts:

  1. Annual Management Charge (0.17%) – paid to BlackRock for investing your money
  2. Administration Fee (0.58%) – paid to Penfold for arranging your pension for you 

Penfold usually quotes the total all-in cost of 0.75% even though not all of this goes to Penfold. This is because we like to be transparent & think it’s important to always make pensions less complicated (and worryingly we’re one of the only pension providers that does this). You can read more about our all-in fee here.

What fee are we waiving?

For the next 6 months, we have decided to waive our entire 0.58% Administration Fee (also known as a platform charge) on all pension balances under £25,000.

The administration fee covers everything that Penfold does, the most important of which are: collecting your payments via direct debit, safeguarding your money in-line with FCA guidelines, reporting regularly to HMRC and the FCA, claiming back your tax, and providing the app/website/team to support you and help you access it.

The annual management charge of 0.17% will continue to be deducted by BlackRock, but this will be the total cost of your pension for all balances up to £25,000. If you have more than £25,000 in your pension you will only pay the administration fee on amounts over £25,000.

Why are we doing this?

We’re doing this because the self-employed are some of the hardest hit by the current economic crisis, and as the vast majority of our customers are self-employed, we want to do everything we can to help them.

We know this won’t put any actual extra cash in your pocket right now, but we wanted to do anything we could to help, and the less we take whilst the markets are down, the more our customers will benefit when the markets rebound.

Saving for the future is probably not top of mind for any of our customers right now, but if this helps nudge people to keep doing it whilst times are tough – that’s a good thing.

Is it for everyone?


We won’t be asking anyone to demonstrate that they’re actually self-employed or in financial difficulty – we will automatically apply this waiver to all Penfold pensions for the next 6 months & apply this to new customers as well as existing customers and for any existing pensions transferred into Penfold.

We’ll also backdate this to the 1st March, and if you do make payments into your pension over the next 6 months, unless they take your total pot to more than £25,000, you will not pay any fees at all. For balances over £25,000, you will still only pay fees on the balance above £25k.

Have any questions? Get in touch here.


Penfold is not a financial advisor. We are happy to help with questions about your pension but if you are unsure they you should seek financial advice. A pension is a long term investment. Capital at risk.

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