Each month Sam exchanges £80 (4% of salary) into a pension. By exchanging the individual’s salary this way, the net cost to Sam is £54.40, however, what actually goes is in £180.
Sam’s employer pays an additional £100 (5% of Sam’s salary) into the plan, taking the overall contribution to £180
Source – Aviva
Each month Nihal exchanges £140 (7% of salary) into a pension. By exchanging the individual’s salary this way, the net cost to Nihal is £95.20, however, what actually goes is in £340.
Nihal’s employer pays an additional £200 (10% of Nihal’s salary) into the plan, taking the overall contribution to £340.
Nihal will see £9,600 more than Sam paid into their pension plan.
The additional net cost to Nihal will have been £2,448
Nihal will see £19,200 more than Sam paid into their pension plan.
The additional net cost to Nihal will have been £4,896
Nihal will see £38,400 more than Sam paid into their pension plan.
The additional net cost to Nihal will have been £9,792
The tables below show the transaction costs for Aviva’s default investment funds and for their top 10 funds by assets held.
