Investing
How much investment and pension charges really cost
Last updated 16 October 2026
On regular savings over 25 years, a yearly charge of 1.5% instead of 0.2% costs about €37,000. How charges compound, and where they hide.
A charge of 1% a year sounds small next to a return of 5%. But it is taken every year from the whole amount, gains included, and the money it takes can no longer grow. Over decades that adds up to a large share of the final value.
Five charges, same savings
Put €20,000 in now and €200 a month for 25 years, €80,000 in all, growing 5% a year before charges. With no charges at all it would reach €184,874.00.
| Yearly charge | Value after 25 years | Charges taken | Lost in total, with growth |
|---|---|---|---|
| 0.2% | €178,133.14 | €4,203.50 | €6,740.86 |
| 0.5% | €168,547.52 | €10,133.36 | €16,326.48 |
| 1% | €153,872.40 | €19,092.86 | €31,001.60 |
| 1.5% | €140,673.05 | €27,012.93 | €44,200.95 |
| 2% | €128,793.01 | €34,012.63 | €56,080.99 |
At 1.5% the saver ends up with €37,460.09 less than at 0.2%. The last column is bigger than the charges themselves because each euro taken would have gone on growing.
Where charges hide
- Ongoing charge of a fund or exchange-traded fund (ETF), taken inside the price. You won't see it on a statement, but it is in the fund's key information document.
- Platform or account fee: a yearly percentage or a fixed fee charged by the broker or provider.
- Dealing fees each time you buy or sell, and a currency conversion charge on shares bought in dollars or sterling.
- Pension charges: an annual management charge on the fund, and sometimes a charge on each contribution. Charges on a Standard Personal Retirement Savings Account (PRSA) are capped; on a Non-Standard PRSA they are not (Citizens Information).
Add them together. A fund at 0.2% held on a platform charging 0.5% costs 0.7% a year, not 0.2%.
Charges and tax
These figures leave tax out, as in a pension. Outside a pension, tax takes a share of the growth that charges leave behind, so both values shrink, but the cheaper option still finishes ahead. See how savings and investments are taxed.
To compare your own charge with a cheaper one, use the investment charges calculator.
Work it out
- What charges cost your pension or fund →
- Savings account, ETF or shares? →
- What paying more into your pension really costs →
Sources
- Revenue: Personal Retirement Savings Accounts (employer contributions above 100% of salary are a benefit in kind from 2025) (checked 25/10/2026)
- Revenue: Tax and Duty Manual Part 27-04-01: offshore funds in the EU, EEA and OECD (38% rate, 8-year deemed disposal, no loss relief, no USC or PRSI) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.