Hello all
I’m new to the forum so spent a lot of time studying the existing threads in the hope of avoiding silly questions and duplication. There are some great posts here. Thank you everyone.
I have a single friend who will have 27 years of with the HSE at age 65 in 2030. She said she has looked into NSP but it is too expensive so she has decided against it. She’d like to retire at 62 or 63 if possible. She’s on a salary of about 60k. (Having read some posts in this forum I am thinking that I she should revisit NSP but anyway she’s just looking at AVCs now. )
She started making AVC contributions mid-2023, encouraged by the broker that everyone in her workplace uses. The allocation rate is 85% for the first year and 96% thereafter. The AMC is 0.75%. It’s invested in New Ireland Passive IRIS 2030. (I’ve seen bad reports here on New Ireland funds but they were the only ones offered.)
I think the charges are excessive and she should change to an execution only AVC PRSA. Given that she’ll only be contributing for another 6 years I’m wondering if it’s worth the effort. I guess in cash terms the 96% allocation amounts to about a loss of around €700/€800 going in every year, and the AMC is not that bad at 0.75%.
If she does this:
I’m new to the forum so spent a lot of time studying the existing threads in the hope of avoiding silly questions and duplication. There are some great posts here. Thank you everyone.
I have a single friend who will have 27 years of with the HSE at age 65 in 2030. She said she has looked into NSP but it is too expensive so she has decided against it. She’d like to retire at 62 or 63 if possible. She’s on a salary of about 60k. (Having read some posts in this forum I am thinking that I she should revisit NSP but anyway she’s just looking at AVCs now. )
She started making AVC contributions mid-2023, encouraged by the broker that everyone in her workplace uses. The allocation rate is 85% for the first year and 96% thereafter. The AMC is 0.75%. It’s invested in New Ireland Passive IRIS 2030. (I’ve seen bad reports here on New Ireland funds but they were the only ones offered.)
I think the charges are excessive and she should change to an execution only AVC PRSA. Given that she’ll only be contributing for another 6 years I’m wondering if it’s worth the effort. I guess in cash terms the 96% allocation amounts to about a loss of around €700/€800 going in every year, and the AMC is not that bad at 0.75%.
If she does this:
- From what I’ve read here, she can move the AVCs to the new PRSA or leave them where they are. I think it’s much of a muchness.
- What would she actually need to do in practice to make this happen? Send a letter to her current broker saying she’s cancelling, and then set up with one of the execution only brokers? Then set up a revenue online account to notify them in order to get her tax credits changed?
- Will she have to take responsibility herself for figuring out what her max annual AVC contribution will be? E.g if topping up with a once-off AVC contribution at year end. The current broker helps her to do that. She is afraid to take on anything herself so actually the broker is useful to her, albeit at a fee...