From 1/11/98 until 1/7/2000 I was paying monthly in to a pension with Zurich life.
I then started work with company with DC pension in place so Zurich Life pension was made paid up.
I have a number of unit linked funds with Zurich Life totaling about 250k gross.
I never payed much attention to the pension fund due to the fact that there is only about 2200 euro in the fund. I only noticed lately that I am been charged 4.4% AMC on this minute pension fund compared to 1% AMC on my funds.
Out of a fund of 2200 euro there have been about 600 euro in charges to date.
I do not care about this pension as such but I do feel this is very wrong. I contacted Zurich and after several e-mails and a letter back in January they informed me last week that they would be writing out to me next week. I informed Zurich that if they could not offer a better AMC in relation to this very small fund I would move my 250k elsewhere.
In the letter I received from Zurich they state
That they recover initial expenses by investing initial first two years premiums in Initial units which bear additional charge of 4%
Due to the fact that I paid into policy for less than two years funds will remain in initial units until I retire in 2023 and only then can I avail of .4% charge.
Zurich state that details are in policy document. This is true I did not read the small print nor did agent explain to me.
15 yrs after making policy payed up I do not feel this is fair.
Comments welcome. Am I wrong in cashing in my unit linked policies if there is no move on charges?
I then started work with company with DC pension in place so Zurich Life pension was made paid up.
I have a number of unit linked funds with Zurich Life totaling about 250k gross.
I never payed much attention to the pension fund due to the fact that there is only about 2200 euro in the fund. I only noticed lately that I am been charged 4.4% AMC on this minute pension fund compared to 1% AMC on my funds.
Out of a fund of 2200 euro there have been about 600 euro in charges to date.
I do not care about this pension as such but I do feel this is very wrong. I contacted Zurich and after several e-mails and a letter back in January they informed me last week that they would be writing out to me next week. I informed Zurich that if they could not offer a better AMC in relation to this very small fund I would move my 250k elsewhere.
In the letter I received from Zurich they state
That they recover initial expenses by investing initial first two years premiums in Initial units which bear additional charge of 4%
Due to the fact that I paid into policy for less than two years funds will remain in initial units until I retire in 2023 and only then can I avail of .4% charge.
Zurich state that details are in policy document. This is true I did not read the small print nor did agent explain to me.
15 yrs after making policy payed up I do not feel this is fair.
Comments welcome. Am I wrong in cashing in my unit linked policies if there is no move on charges?