Advice regarding an opening AVC

[Protocol]

I am pretty lost with this all and hopefully someone here can help me.

There isn't that much choosing / research to do if you use an EO broker, as they tend to keep things simple.

(1) This EO brokers sells Zurich AVC-PRSA.

https://www.labrokers.ie/prsas-ireland-personal-retirement-savings-account-pension-plan/

https://www.labrokers.ie/zurich-prsa-avcs/

The catch is that €500 pm contribution is required to get the lower 0.75% AMC.



(2) This EO broker also sells Zurich AVC-PRSAs

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

With this EO broker, the Annual Management Charge for a Single or Regular PRSA (or AVC PRSA) is 0.75% if minimum SP €5,000 or RP €350pm . For contributions less than these it's 1%.


(3) This EO broker sells Royal London AVC-PRSAs

Execution Only ARF

Execution Only ARF, PRSA, PRB. Passive Investment Funds. Global Index Tracking Funds.

www.execution-only.ie

Again, better rates after €500pm.

 

[CharlieMac]

@PhilMarlowe Was Cornmarket the broker you didn't want to go with or some other?

Where I work Forsa union collaborate with Cornmarket and Irish Pensions and Finance and encourage members to use them.

I wrote to forsa saying I think that relationship is totally inappropriate,. It gives them an unfair, anti-competitive advantage over other, lower cost pension providers. In particular because Forsa only recommend those and no other. Most people don't realize there are cheaper alternatives.

But also because, as far as I know, public sector employers will not facilitate deductions from payroll and tax relief at source for AVCs made to lower cost pension providers.

In fairness to my union rep he put my concerns to Cornmarket senior mgmt and I got a big response going on and on about how Cornmarket offer greater fund choice, most people need the hand holding and don't want to do a tax return.

I think that's the wrong way of looking at it. Public sector employers should facilitate their employees to make AVCs to any pension provider in the country all in the same way without favoring any.

The kind of advice people tend to get from Cornmarket usually amounts to "Do you want a low, medium or high risk fund?" which people choose without really ever understanding the risks or their appetite for risk.

Financial education should be a priority in schools.

 

[PhilMarlowe]

Was Cornmarket the broker you didn't want to go with or some other?

Funnily enough, I'd have been happy enough to go with Cornmarket. I was originally looking for a generic AVC that would hold my hand but my institution has a weird situation that limits us even further and only allows us to use IP&F. I sat down with them but found their fees exorbitant and their recurring fee increase whenever you increase a premium wasn't explained at our meeting, which I had a problem with. So I went to Cornmarket and was told that not only can they not help me with an AVC but if I set up an AVC PRSA with them I'd only be allowed to make a single lump sum payment a year. I'm incredibly frustrated by the system and have been emailing HR and the unions but nothing will change.

(1) This EO brokers sells Zurich AVC-PRSA.

Hi Protocol,
Thanks for these. I had found these guys a day or two ago and found that their website really helped me understand the process. The point about AMC, would I be correct in assuming that if I start putting in less that €500 I'll be charged at 1% but later when I increase it to over €500 then it will change to the lower rate? Or does it get locked in by the original amount?

Thanks everyone for the help. I can see why this site is recommended.

 

[Protocol]

The point about AMC, would I be correct in assuming that if I start putting in less that €500 I'll be charged at 1% but later when I increase it to over €500 then it will change to the lower rate? Or does it get locked in by the original amount?

I believe (2) and (3) are the same person.

I suggest sending the brokers an e-mail about a technical question like that.