Pension Led Funding (PLF) has a charging model that is broadly similar to other types of pension arrangements although with key differences.
Typically, pension arrangements have 3 component costs:
1. Cost of advice – incurred advising on the arrangement at outset and on an ongoing basis.
2. Cost of implementation – concerning the set-up of a pension scheme and any associated investments
3. Cost of administration – charges associated with the operation of the pension scheme, compliance, etc
PLF is no different in this regard and has a fixed, transparent fee structure. In a standard case, the cost of the advice is £5000, the cost of implementation is 3% of the funding facility and the cost of administration is £2500 per annum.