AVC Start up cost
- Thread starter deegan
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What level of contribution are you considering?
LDFerguson
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From your figures the total cost of setting up the AVC in the first year is €666. 
eek Aside from the satanic connotations, this is not an unreasonable figure as a set-up charge. Typically, this figure is shared between the sales person and the pension company. In some instances, the set-up charge can be in excess of 50% of the first year, which for this sort of contribution would be unreasonable in my view.
You have an alternative, which is to set up your own AVC PRSA with a broker or PRSA company of your choice. The initial charge will be lower but the ongoing charge will be higher at 1% per year. If you have a short time to retirement, this won't be much of an issue. If you have a long time to retirement, the extra 0.3% per year may add up to more than the 18.5% initial charge.
There are lots of threads here on Askaboutmoney about low-cost PRSAs.
Most things in life are negotiable - you can ask the pension sales person if this set-up charge is negotiable. Tell them you're considering starting your own AVC PRSA instead. The worst s/he can do is say No.
Let us know how you get on.
Liam D. Ferguson
www.ferga.com
eek Aside from the satanic connotations, this is not an unreasonable figure as a set-up charge. Typically, this figure is shared between the sales person and the pension company. In some instances, the set-up charge can be in excess of 50% of the first year, which for this sort of contribution would be unreasonable in my view. You have an alternative, which is to set up your own AVC PRSA with a broker or PRSA company of your choice. The initial charge will be lower but the ongoing charge will be higher at 1% per year. If you have a short time to retirement, this won't be much of an issue. If you have a long time to retirement, the extra 0.3% per year may add up to more than the 18.5% initial charge.
There are lots of threads here on Askaboutmoney about low-cost PRSAs.
Most things in life are negotiable - you can ask the pension sales person if this set-up charge is negotiable. Tell them you're considering starting your own AVC PRSA instead. The worst s/he can do is say No.
Let us know how you get on.
Liam D. Ferguson
www.ferga.com