how to check out a pension broker

Linda G

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We have been given a proposal for switching our prsa - avc from one major well known company to another - the benefit being that the 'annual management charges & allocation of funds are much more favourable as the new company is the provider for my husband's employer and the pension broker calls to the workplace offering advice.

I know it sounds like a no-brainer as we are going into cash funds & will save a lot of money over the longterm but I want to just check out the broker making the proposal. Their website looks fine but is there any other check I can make to ensure they are 'cosher'?
Any help appreciated.
 
Linda G;

If your husbands employer is of a fair size and has used this broker/company over the years and the staff are happy nuff , that is a good sign.Ask whoever in Company deals with him is he ok.
Also if you meet Broker and he is pushy ie overselling , just back away.
Check on transferring prsa that there are no exit charges etc.
 
Linda, you need to be certain that the transfer will really be of benefit. A transfer of a PRSA arrangement must receive 100% allocation & no less. So are you really gaining. Compare the new management charge to the current. You also mention cash funds above, they might not be the best value on a standard 1% management charge on a PRSA as typically the return will be less than the annual management charge.
Just be careful the transfer isn't being proposed for commission purposes only, as typically the broker will receive a percentage of the fund value from the provider for bringing in new money.
 
Google him. Have a look on the Central Bank's website. Talk to other people in the company who have dealt with him.

The most important thing is if you are comfortable with him. It sounds like he is doing it for legitimate reasons, saving you money.

By the way, if you are investing for the long term, why are you investing in cash?
 
Post the 'old' charging structure and the proposed 'new' charging structure ie what's the Annual Management Charge and Allocation Rate on the existing and proposed PRSA contracts? The allocation rate has to be 100% allocation for transfers but if you're still going to contribute on a regular basis, how much of your future contributions will be invested?

There's an awful lot of switching between providers going on at the moment, for commission purposes, as there's very little new business available to generate income for advisors.
 
Linda G ;
Re .G Sheehy comments.

Moving between Providers without GOOD reason was/is called Churning. It was solely done for the Advisor to get Commission.
Watch out for it .Ask him what he gets ,
 
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