Ongoing Charges Figure (OCF) Impact
A 1% OCF compounded over 30 years can cost you 25% of your final pot.
Updated May 2026, using HMRC 2026/27 rates and current ONS / gov.uk figures.
Run the compound calculator twice: once at the gross expected return, once at gross-minus-OCF. The difference is what fees cost you. UK platform fees average 0.20-0.45%; fund OCFs 0.05-1.50%.
Worked examples
£100k for 30 years at 6%: £574k. At 5% (1% drag): £432k. Cost of 1% OCF: £142k.
UK index tracker: ~0.07% OCF. Active fund: ~0.85%. Difference of 0.78% over 30 yrs on £100k = £73k.
Frequently asked questions
What's a typical UK platform fee?
0.20-0.45% on Vanguard / iWeb / Fidelity / Hargreaves Lansdown for ISAs and SIPPs. Capped or tiered above thresholds.
Should I avoid all fees?
No — some funds genuinely earn their fee. But for passive index exposure, low-cost trackers (Vanguard, iShares Core, Fidelity Index) usually win after fees.