Radical Statistics
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Table 4: Comparing charges on contributions or on the fund
|
a) 1% of contributions |
= £10 per annum |
= £200 total (1% of fund) |
|
b) 1% of fund per annum |
= £ (rises) |
£1700 total (8.5% of fund) |
If the fund grows, due to interest, to £30,000 and contributions remain constant at £1000 per annum, the difference in the two charging formulae widens.
|
a) 1% of contributions |
= £10 per annum |
= £200 total (0.7% of fund) |
|
b) 1% of fund per annum |
= £ (rises) |
= £2450 total (17% of fund) |
Source: General Household Survey 1993-4 (author's analysis)