Hi,
I am wondering whether I should invest in the AVC scheme provided as part of my occupational pension scheme or start a PRSA. The pension scheme AVC's have a 5% bid/offer spread and a .65% annual management fee, I'm told this means for €100 I pay in €97.85 gets invested. However there is only one fund manager (Irish Life) and only one fund, Indexed Global Equity.
If I started a PRSA I would have greater choice of managers and funds, but will I get equal or better charges?
Also, am I restricted, at retirement, to only being able to use 25% of the PRSA as a tax-free lump sum, while all of the AVC could be used? Are there special AVC PRSA's that allow 100% of the fund to be used to give the tax-free lump sum?
thanks in advance
I am wondering whether I should invest in the AVC scheme provided as part of my occupational pension scheme or start a PRSA. The pension scheme AVC's have a 5% bid/offer spread and a .65% annual management fee, I'm told this means for €100 I pay in €97.85 gets invested. However there is only one fund manager (Irish Life) and only one fund, Indexed Global Equity.
If I started a PRSA I would have greater choice of managers and funds, but will I get equal or better charges?
Also, am I restricted, at retirement, to only being able to use 25% of the PRSA as a tax-free lump sum, while all of the AVC could be used? Are there special AVC PRSA's that allow 100% of the fund to be used to give the tax-free lump sum?
thanks in advance