Advice needed on moving PRSA

A

aine45

Registered User
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Hi, I'm relatively new to investing so apologies if I'm asking already answered questions.
I've been following The Rebel Finance School on YouTube and it seems Index Funds are the way to go. This school is in the UK and it appears that there is a vast difference between opportunities for low cost investing there versus Ireland.

I'm paying into a prsa at the moment..it's Zurich prisma 5 but the charges seem high at 1%.
I also have a standard life fund for nearly 20 years which is worth less now than it was at the beginning.. 65k paid in and now worth just 59k!! I changed it a few months ago to 75% vanguard global stock index fund and 25% standard life corporate bond (which is not doing well). I'm not sure of charges on this.

Having read recently about Royal London Irelands new pension, I'm wondering if I'd be better off moving the Zurich prsa to that and if it's possible to move the standard life one as well? What is the closest index fund to Vanguard global with RL?
I also have 100,000 sitting in irish savings, 50, 000 in Trade Republicand 20,000 in lightyear. I'm 57 by the way. I could move the 100k there as well maybe.
Any advice is very welcome.
 
aine45 said:
Having read recently about Royal London Irelands new pension, I'm wondering if I'd be better off moving the Zurich prsa to that and if it's possible to move the standard life one as well?
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All PRSAs are totally portable without charges/penalties for moving.

Regarding Royal London Ireland you might want to read this thread:

Probably the best (cheapest) PRSA in the world?

The launch of Royal London Ireland's new pension product in late November 2024 seems to have finally offered customers accessible, lost-cost PRSAs. Through an execution-only broker, it is relatively easy to access a passive fund AMC of 0.55% or significantly lower on larger transfers. Taking...
www.askaboutmoney.com
aine45 said:
What is the closest index fund to Vanguard global with RL?
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RL BlackRock Developed World Equity Index Fund

Both are MSCI World Index trackers.
aine45 said:
I also have 100,000 sitting in irish savings, 50, 000 in Trade Republicand 20,000 in lightyear. I'm 57 by the way. I could move the 100k there as well maybe.
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You mean move lump sums of savings into a PRSA? That probably wouldn't be a good idea due to the lack of tax relief on most or all of it. Or maybe you mean something else?
 
I suppose I mean investing that 100k in the same index fund..for investment purposes as its earning basically nothing in the savings account. I read in that thread you quoted that Standard life offer a good rate as well on a bigger amount or is that just relating to prsa?
 
aine45 said:
I suppose I mean investing that 100k in the same index fund
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Difficult to address that question without more information such as would be provided by a Money Makeover.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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aine45 said:
I read in that thread you quoted that Standard life offer a good rate as well on a bigger amount or is that just relating to prsa?
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I don't know what you're referring to here. Please clarify - e.g. by quoting or linking to the content in question.

How to reply to or quote a post

To reply to a post, you just start typing in box below the post and then press Post Reply.
www.askaboutmoney.com
 
aine45 said:
Somebody posted about cheaper rates with Standard Life once its over 100k..
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OK - that may be the case. No harm in checking out the offers from the likes of Standard Life, Zurich, Royal London Ireland to see what the lowest charges might be for your specific needs. Especially if you would be going with essentially the same asset allocation with each - i.e. an MSCI World Index tracker fund. You could start with the usual (execution only and/or full service) brokers that are suggested around here:

Ferguson and Associates

Pensions (including Self Administered) Life Assurance - Income Protection Savings - Investments
ferga.com

PRSA Ireland | PRSA.ie

Low Cost Pensions Ireland Zurich LIfe The Value Pension Website Execution Only PRSA AVC PRSA Pensions www.prsa.ie
www.prsa.ie
 
You do know that Royal London PRSAs are no cheaper than Standard Life's? They both have competitively priced contracts.
 
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ClubMan said:
What does this mean?
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Typo

Standard Life have 16 different charging structures for their PRSA, Royal London have just the 10.

Which one you get depends on what charging structure the advisor you speak to uses. But the range of charging structures offered by both is the same.

Where Royal London are cheaper is for low value PRSAs or people just starting a PRSA, they are pretty cheap in that regard. Standard Life have obviously taken the approach that it takes too long to make money from these contracts so they don't offer the same terms in these circumstances.
 
Steven Barrett said:
Standard Life have obviously taken the approach that it takes too long to make money from these contracts so they don't offer the same terms in these circumstances.
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Not a strategy that would inspire the advisor community to place business with them. Not sure they know exactly where to pitch themselves in the market or how to increase market share without promoting 'consolidation' of products or focusing on targeting new (to the market / not existing) business. Hard to figure them out really.
 
Not really. They've taken a view that PRSAs at 0.4% for small cases won't make money for a long time and they aren't interested in it. They will take it at 0.9%. Royal London will take it. Which I can't see the commercial sense of. A €100 a month PRSA at 0.4% earns them €4.80 a year Even with growth and compounding, will they ever make money off this type of contract?
 
Fortune said:
Why would that be the case?
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To me, it just seems like they are disinterested in the bread & butter/acorn/little people business for a while now. Maybe it's someting to do with their business strategy since the transfer to Phoenix Life, I don't know. It's like they just want the 'oak tree' business. Similar move by Davy's/BoI recently with the spike in AMCs. I seriously doubt that the othrerplayers in the regular/annual premium market are not making good money on that book of business.

They're the oldest company still operating here and yet their regular/annual premium business is very low and market share is relatively low (see 2023 figures in image). That market has doubled since 2013. Also, in 2013 their market share was 13%, in 2023 it was 6% and yet the market size has doubled over that period. That, to me, just suggets a lack of direction and that uncertainty has filtered down to the advisor market.

 
GSheehy said:
I seriously doubt that the othrerplayers in the regular/annual premium market are not making good money on that book of business.
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I suspect that for the lower premium end of the market, volume is required to make profit. If the larger players in the market a hoovering that all up, why go looking for business that costs you money?
 
Because it shows a commitment to market and if you don't do it someone else will, even a new player like RL. Companies just have to be innovative and do things better. If you're committed to the market for the long term you'll make money. What's break-even for a life/pension company on a product, 7 years? That's not long in terms of this industry.

Volume is down to having a product that advisory's are comfortable selling at the price. Otherwise you end up being pigeon holed as a boutique player and growth is difficult. Again, personal opinion on what I see.
 
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