Pensions Fees

[poppie]

Hi, there.
I'm sure this has been asked before. I just can't quite get my hands on the straight answer. Maybe there isn't one !
Recently got some advice regarding starting a pension.
This was in the proposal letter;
"

• The administration on this plan carries a 1% per annum base Fund Management Charge. Additionally, you will receive 95% allocation of funds. There are no consultation charges for ongoing advise on this plan.

Am I understanding correctly. For everything €100 I pay into this pension plan €5 will go on fees/commission.

Is this the standard rate?

Please help!

Thank you

 

[Protocol]

IMHO, this is a crazy high fee/charge.

Is it standard? I don't know, but it is fairly common, I suspect.

By shopping around you can get 100% allocation rate.



What type of pension is it? PRSA? RAC? AVC?

 

[poppie]

IMHO, this is a crazy high fee/charge.

Is it standard? I don't know, but it is fairly common, I suspect.

By shopping around you can get 100% allocation rate.



What type of pension is it? PRSA? RAC? AVC?

PRSA

 

[poppie]

PRSA

Thank you. That was my initial instinct. BUT for a complete novice, this language is foreign and "shopping" around for financial products a minefield.

I might as well have "fool" written on my forehead

Any recommendations where one could shop for genuine good advice?

 

[kevhenry]

It sounds like a Standard PRSA you're being offered.

There are two types of PRSA (Standard PRSA & Non-Standard PRSA) and they have different charging structures depending on where you get it.

95% allocation rate is effectively an ongoing 5% subscription fee and this would be most common when going direct to providers or through a bank. PRSA's can be very expensive products with a charging structure like this.

If you're happy with a Standard PRSA then you can get one online with 100% allocation on an execution only basis (i.e. no advice at set up stage or ongoing) or you can get a Non-Standard PRSA with a broker on a similar basis for a fee.

Non-Standard PRSA's have more funds so they may have higher management fees.

Kevin
www.thepensionstore.ie

 

[poppie]

It sounds like a Standard PRSA you're being offered.

There are two types of PRSA (Standard PRSA & Non-Standard PRSA) and they each have different charging structures depending on where you get it.

95% allocation rate is effectively an ongoing 5% subscription fee and this would be most common when going direct to providers or through a bank. PRSA's can be very expensive products with a charging structure like this.

If you are happy with a Standard PRSA then you can get one online with 100% allocation on an execution only basis (i.e. no advice at set up stage or ongoing) or you can get a Non-Standard PRSA with a broker on a similar basis for a fee.

Non-Standard PRSA's have more funds so they may have higher management fees.

Kevin
www.thepensionstore.ie

Thanks so much! Now why couldn't Google just tell me that! Lol

 

[Persius]

When the PRSA legislation was originally passed, the fee/commission was capped at 5%. So, guess what!!! Nearly all providers/brokers charge 5%.
Search here for "execution only brokers" and you'll get a few recommendations.

Does your employer offer any pension scheme? Usually, an occupational pension scheme offered by an employer has much lower charges than a personal PRSA.

 

[poppie]

When the PRSA legislation was originally passed, the fee/commission was capped at 5%. So, guess what!!! Nearly all providers/brokers charge 5%.
Search here for "execution only brokers" and you'll get a few recommendations.

Does your employer offer any pension scheme? Usually, an occupational pension scheme offered by an employer has much lower charges than a personal PRSA.

Thank you! I will certainly do that search. No pension scheme offered by employer. So flying solo ...