Hi AH,
Sometimes it is easier to understand the products with an example :
A male aged 35 next birthday paying €2,000 per annum (level) to a Personal Pension to age 65.
If the product has a 5% Contribution charge and an Annual Management Charge of 1.5%, then the estimated fund @ 6% growth is €126,302
If the product has just a 1% Annual Management Charge, only, then the fund is estimated at €145,868.
The potential cost of the 5% and additional 0.5% AMC is almost €20,000 over the term of the plan.