80k for prsa or prb wat should I do.

Discussion in 'Pensions' started by dshakey, Feb 26, 2017.

  1. dshakey

    dshakey Frequent Poster

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    I am changing jobs. I am only 35 and have 80k in my current employee pension. I want to move this to either prsa or prb. But not sure what will give best return and best options

    Any advice be great thanks
     
  2. Merowig

    Merowig Frequent Poster

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    130
    Primary option would be to leave it in the occupational scheme - as the fees are most likely much lower there than in a PRSA or a PRB.
     
  3. SBarrett

    SBarrett Frequent Poster

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    You have to look at each individual contract. Some PRSA's will have a limited fund choice. Others will have the same as the PRB. You can go self directed under both option too. At the end of the day, they are both pensions with the same rules. The return you get is dependent on the investment strategy you chose, not the product you go into.

    Merowig is correct about charges. Most employers pay the charges. If you transfer out, you have to pay them yourself. You will need to confirm this though as not all employers do cover charges.


    Steven
    www.bluewaterfp.ie
     
  4. Merowig

    Merowig Frequent Poster

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    Sure? It is possible to transfer a PRSA abroad - but can a PRB also be transferred?

    And also on the associated costs.


    In case he is paying the charges for the occupational scheme it would be also interesting to know how much they are - and if a PRSA / PRB would be cheaper or not. If he is paying more after switching I wouldn't see a compelling reason to move out of the existing scheme.
     
  5. SBarrett

    SBarrett Frequent Poster

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    Transfer to where?

    I agree with you on the charges. If his ex employer is meeting the AMC, the fund would need to do very well to beat it overall. Trying to outperform by 0.75% -1% each year is a tall ask.

    Other reasons to transfer:
    1. Let under bad circumstances and want to sever all links with that employer.
    2. Want to do something specific with the pension under a self directed structure
    3. Trustees are old and you don't want to have to keep track of who the trustee's are into the future.
    They are exceptions rather than the rule though.

    Steven
    www.bluewaterfp.ie
     
  6. Merowig

    Merowig Frequent Poster

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    Transferring abroad - a PRSA can be transferred to a pension vehicle in an other country. Is this possible as well with a PRB?
     
  7. SBarrett

    SBarrett Frequent Poster

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    Have never transferred a PRB abroad, so I don't know. They are subject to the rules of the scheme, so I'd imagine if you can transfer scheme benefits abroad, you can transfer a PRB abroad.


    Steven
    www.bluewaterfp.ie
     
  8. dshakey

    dshakey Frequent Poster

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    56
    Sound like the general advice is to leave with my old employees. Due to saving on fees. Are the fees going to be that high?
    My thinking for moving it to a prsa or prb was to take control of it. Open up my options for down the road. Like taking lump sum in my 50s.
     
  9. Merowig

    Merowig Frequent Poster

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    130
    AMC with a Standard PRSA is 1% - 0.75% with a Self Directed PRSA of Davy.
    This can accumulate to significant sums still over time.

    Your occupational scheme most likely will already allow you to retire in your 50s.
     
  10. SBarrett

    SBarrett Frequent Poster

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    2,162
    You can do that regardless.

    Ask your old employer what fees you are paying under the scheme. There is no guarantee that they are paying the administration fees, it is dependent on the employer.


    Steven
    www.bluewaterfp.ie