Moving executive pension and adding lump sum.

M

Marian2017

Registered User
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I'm 50 and self-employed. My advisor wants to move my pension, about €200k, from Irish Life to Zurich. It would be split 50% Zurich Prisma 4 and 50% Balanced fund. I also want to add another €60k or so to it. He says that I'll end up with two Zurich pensions, one for the Irish Life transfer and one for the extra €60k and that any other future single premium payments would be separate also. Is that right? It seems odd and he hasn't been totally transparent about other things. (Yes, I'd like a new advisor). Is it due to the % that the broker takes of single premiums?

The allocation rate on both sums would be 100% and the FMC on transfer amounts and single premiums would be 1.25% with 0.25% going to the broker. Regular monthly contributions at 1% fund charge pa. No monthly fee.

I'd be grateful for any thoughts on this proposal as my broker is aware that I know little about pensions and their performance.
 
Is it a PRSA or Master Trust that you have and what reason did he give you for moving it?

On the scenario you describe the commission could be worth up to 4% of the transferring fund based on the charge rates you describe.

Is the 1% charge on regular contributions or is that on the fund itself do you know?

Kevin
www.thepensionstore.ie
 
Thanks for the reply. He said the Zurich one would perform better. The Irish Life one seems to be called Complete Company Solutions 1? The new Zurich one would be a Non Standard advice PRSA.
 
Complete Solutions is a company pension plan so there are considerations involved if he's suggesting to move it to a PRSA in the first instance unless it's also a PRSA.

No one can predict how funds, providers or markets will perform in the future so you should bear that in mind before doing anything.

Kevin
www.thepensionstore.ie
 
Marian2017 said:
He said the Zurich one would perform better.
Click to expand...

This is a very dodgy claim to make. He can show you that Zurich may have done better in the past. It's simply wrong to claim that they will perform better in the future. If anyone knew for certain that Zurich or any other company were going to perform better than the others in the future, why would anybody invest in any of the others? They'd go out of business. Nobody can predict this.

Ask him to put this claim that the Zurich one will perform better in writing to you on his company headed paper. Wait for the excuses to roll in.

I've nothing against Zurich, by the way. Good company. But you shouldn't try to sell someone a product by making claims that are impossible to make. Anyway, you can buy a Zurich PRSA with far lower charges.
 
Always a worry when a financial advisor claims superior fund performance as the reason for moving. Yes, you can claim a World Index will outperform a cash fund etc but he's putting you into Balanced Managed funds with a number of different asset classes.

The Balanced fund is a fine fund, I use it myself. It's been around since 1989, so there is a long track record.

The separate policy thing is annoying. It is a Zurich Life systems thing, clients end up with multiple policies. While it is annoying, it's not the end of the world and wouldn't influence my decision on whether to recommend them or not. Some people are quite happy to have separate policies as they can mature them at different times.


Steven
www.bluewaterfp.ie
 
I don't like this at all.

You might not know much about pensions or performance but you must know how to negotiate.

Contact someone else and ask for a price based on the values you've posted, without disclosing current costs. It looks like you don't have any exit charges to deal with as you took the original one out 7 (?) years ago. He's basically saying the advice he gave you 7 years ago on funds wasn't great.

Honestly, there's better value and somone else will give it to you.
 
GSheehy said:
I don't like this at all.

You might not know much about pensions or performance but you must know how to negotiate.

Contact someone else and ask for a price based on the values you've posted, without disclosing current costs. It looks like you don't have any exit charges to deal with as you took the original one out 7 (?) years ago. He's basically saying the advice he gave you 7 years ago on funds wasn't great.

Honestly, there's better value and somone else will give it to you.
Click to expand...
Yes, I originally wanted to go with Zurich but I think he was tied to Irish Life alone back then. Annoying.
 
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