Frequently Asked Questions
Why use Cavendish?
The benefit of using Cavendish Online is that we reduce the charges to the lowest available. For Stakeholder and Personal Pensions we do not take any commission and we simply charge a set-up fee of £35 to start your pension. We act as the intermediary or advisor, even though we do not offer advice.
With regards to the Cavendish Online FundSupermarket Pension, we do not charge any set up fees and instead charge an annual fee of 0.05%. This will be taken as well as an annual 0.25 platform charge taken by FundsNetwork and the fund manager charge (typically 0.75% or only 0.10% for tracker funds).
Our service is designed for clients who have done their own research and know which pension they would like to invest in. We will happily arrange the pension although we cannot offer any financial advice. Cavendish Online is strictly an ‘execution-only’ service.
If you’re unsure about the suitability of any particular financial product you may wish to seek independent financial advice from a fee-based IFA.
Can I top-up an existing pension via Cavendish Online?
Yes. With most providers there are two options to do this.
The first is simply to just make the new contribution via Cavendish Online. In this case only that new contribution will be on the reduced AMC and your existing pot will be unaffected (presumably remaining on the normal, higher AMC).
The second is to set up a new plan via Cavendish Online and to simultaneously transfer your existing plan into the new one. This way your whole pension will be under Cavendish Online’s reduced charges. This process is called 'repensioning' and is described more fully here
What’s the difference between stakeholder and personal pensions?
Broadly speaking, the difference between Stakeholder Pensions (SHP) and Personal Pensions (PP) is that SHPs are generally designed to be lower cost but the PPs will tend to offer a greater investment choice.
For both SHP & PP however, costs and choice will be different from one company to another.
You will notice that PP & SHP will have a set number of what are called ‘internal funds’ (core funds). These are a broad range of pre-packaged funds in which clients’ pension monies can be invested. This range typically offers lower, medium and higher risk/ reward strategies. Beyond such internal funds, one may elect to invest into an array of funds which are ‘external’ to that main list; however this tends to attract an additional AMC (which Cavendish cannot reduce). PPs generally have more external funds on offer than SHPs.
How much will it cost?
In exchange for relinquishing all its commission back to the investor, Cavendish simply charges a one-off set-up fee of £35 for Stakeholder or Personal pensions. Similarly, a repension will cost a one-off fee of £70, representing the new plan and the transfer of the old one into the new one.
With regards to the Cavendish Online FundSupermarket Pension, there will be no set up or transfer charges and instead we will take an annual fee of 0.05%. This will be taken as well as an annual 0.25% platform charge taken by FundsNetwork and the fund manager charge (typically 0.75% or only 0.10% for tracker funds).