When starting a pension through employer, and where they match your contributions to a certain %, does the employee have any flexibility in choosing who this pension provider is? Reason for the question is the pension provider my employer use has an allocation rate of only 99.275%, and they take also charge 1% management charge on the fund balance. Over the course of a working life, this could end up costing €125-150k in charges.
My initial thoughts are:
(i) there's no flexibility in choosing this portion of my pension and to just suck it up as a 'cost of business' and acknowledge the employer contribution will more than make up for the mgmt fees above
(ii) I can make AVC's with another provider, with a more attractive mgmt fee.
Is this the right way to look at this or am I missing something? Thanks.
My initial thoughts are:
(i) there's no flexibility in choosing this portion of my pension and to just suck it up as a 'cost of business' and acknowledge the employer contribution will more than make up for the mgmt fees above
(ii) I can make AVC's with another provider, with a more attractive mgmt fee.
Is this the right way to look at this or am I missing something? Thanks.