# Pension Fees Cost You Thousands

> Your retirement savings could lose £87k to high pension fees.
- Title: Pension Fees Cost You Thousands · MoneyWeek | Shortify
- Summary: Your retirement savings could lose £87k to high pension fees. High pension fees cost retirees tens of thousands of pounds over time.
- Keywords: pension, fees, sipp, vanguard, ajbell, hargreaveslansdown, retirement, investment, Cost, Thousands, MoneyWeek
- Source: MoneyWeek — https://moneyweek.com/personal-finance/pensions/how-much-are-pension-fees-costing-you
- Published: 2026-09-29T08:56:00+00:00
- Read time: 1 min
- Topics: pension, fees, sipp, vanguard, ajbell, hargreaveslansdown, retirement, investment
## Retirement savings goal
Saving for retirement builds enough money for later life.
## Pension options
Workplace pensions and self-invested personal pensions (SIPP) are common choices.
## Fee impact
0.5% fees cost £47k over 40 years for £250 monthly contributions.
## Higher fees hurt more
1.5% fees cost £87k more than 0.5% fees over 40 years.
## Expert warning
Vanguard's James Norton says higher fees mean lower returns.

> When buying a car, it's common for a more expensive vehicle to perform better than a cheaper one. So, you may think that higher fees should lead to better investment outcomes. But the higher the fees you pay the less returns you get to keep for yourself.
## Fees comparison
Vanguard charges 0.15% max, AJ Bell 0.25% on first £250k.
## What to do next
Shop around for low-fee pension providers to save money.
## Key takeaway

High pension fees cost retirees tens of thousands of pounds over time.