High Pension Fees?

[franc82]

Thanks a million @GSheehy for your very valuable insight which is very much appreciated. The number of employees in the pension isn't known (I have asked the broker and I am still waiting for his reply) but I guess is that it is relatively small.

Steven, even with those charges, are they apply every month? Because it is hard to reconcile the numbers with your assumption.

@ClubMan you're probably right most probably the employer's contribution is only 2.5% in the end which is just unfair on us because if I quit the plan now, I will be hit with more penalties. I wish I was aware of all these hidden costs before signing up.

As I said, once I have spoken to the broker, I will definitely update this thread as my experience can help someone else.

Thanks a lot guys!

 

[ClubMan]

@ClubMan you're probably right most probably the employer's contribution is only 2.5%

Check your contract of employment, employee handbook, or just ask you employer's HR people?

in the end which is just unfair on us because if I quit the plan now, I will be hit with more penalties.

Some employees don't get anything from their employer!

What penalties are you referring to? Clawback of the employer contributions?

 

[Airgunster]

@franc82

As I said, once I have spoken to the broker, I will definitely update this thread as my experience can help someone else.

I'd personally check in with company's HR people in parallel, to discover on what is expected by your employer on fees and allocation rates (for both, your and your employers contribs) since you're on their pension scheme and they were setting it up they will know it for sure (or will know someone internally to ask).

 

[presidenttttt]

You have 100% allocation - this is good
0.65% amc - also good
€6 Pensions Authority fee - everyone pays this
€3.93 policy fee - not great but Master Trusts have imposed these on most of their contracts. It is a fixed amount. The bigger your pension fund gets, the more insignificant the amount is.

You have a slightly lower than normal (0.65% amc is good) charging structure for a master trust.

Aviva UK have a 0.09% AMC on the account for one employer. The cost of the trackers and fund options people can select from is 0.1-0.3%, with most at 0.1% - standard blackrock type trackers.

How can ireland be 2x or 3x more expensive? Is it purely a lack of competition. I can not see anything structurally different.

Or am I misunderstanding something?

 

[Realcork]

The figures you are referring to in the UK are the fund manager costs .

Costs in ireland are higher but you are not comparing a like for like scenario

The 0.65% amc is inclusive of pension administration fee. Some larger employers pay the cost of admin to a third party and the employee pays a reduced amc as life company is then only managing the money.

 

[GSheehy]

Aviva UK have a 0.09% AMC on the account for one employer. The cost of the trackers and fund options people can select from is 0.1-0.3%, with most at 0.1% - standard blackrock type trackers.

How can ireland be 2x or 3x more expensive? Is it purely a lack of competition. I can not see anything structurally different.

What are the charges/fees in other EU Countries with similar sized populations, like Finland or Slovakia?