Do I need a broker?

mangled85

Registered User
Messages
13
Hey y'all, I have an Irish Life self trading pension currently and need to change as they are closing this service. I still would like to have the ability to trade hence I think I need to move. I have a self employed pension.
I contacted Aviva about starting a pension with them but they told me to contact a broker.
Is it not possible to get a pension directly with a pension provider or do you always have to go through a broker?

Thanks
 
Aviva/Friends First have the https://www.friendsfirst.ie/pensions/do-it-yourself-pension/ (SDIO) platform (Self Directed Investment Option) which offers a trading account through Cantor Fitzgerald which they offer through brokers.

You could also look at a Davy Select PRSA or Davy Executive Pension Plan if you're a director and looking to actively trade.

Some insurance providers still have a direct sales channel but it's usually cheaper to go through a broker.

Kevin
www.thepensionstore.ie
 
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No probs.

Direct sales channels and tied-agents have very little pricing flexibility since their operating costs, software, office and compliance costs are fully covered by their employer/parent company and they have sales targets to hit. As such, they can only offer reductions in charges if the transfer amount and/or regular contribution amount is large enough to justify it.

It's difficult to negotiate anything from the client point of view since any 'deals' or charge reductions need to be signed off by management.

Brokers have a multitude of pricing options available since there are about 80 combinations of charges that can be used for each product with each provider.

The more you have in a fund the better the deal you should be able to negotiate as there's more room to manoeuvre.

You also have the ability to pay a set-up fee instead and get set up with lower charges with a broker. Direct sales or tied-agents can't offer that.

Davy charge a base platform fee of 0.9% for an executive pension plan. This 0.9% is the same whether you use the services of an intermediary or do it all yourself. It's slightly different if you're establishing a PRSA where it's 0.75% base fee if you deal directly or 1% if you use an intermediary.

Base AMC on the SDIO platform is 0.75%. SDIO is a fund option to open a trading account with Cantor Fitzgerald. They have a 0.25% trading cost model of min. €100 on an advisory basis or min. €35 execution only.

There may also be additional charges/duties depending on what ETF's or shares you're buying with either.

Kevin
www.thepensionstore.ie
 
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You're welcome and in case you're not aware, the original deadline given by Irishlife has been extended from the 5th May 2020 to the 15th September 2020 so you have plenty of time to do your research and make the most of the lockdown :)

Kevin
www.thepensionstore.ie
 
Hi Mangled85.

Also might be worth checking out the standard life website and see if they have something of interest. They offer execution only stockbroking as part of their pension plans.

[broken link removed]
 
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