ThatNewGuy
Registered User
- Messages
- 67
Sorry to be flippant but that made me laugh!! Stephen Barrett appears to be the pension expert on this forum. Hopefully he can give you the advice needed!for self-preservation I would not disclose her actual age!),
Sorry to be flippant but that made me laugh!! Stephen Barrett appears to be the pension expert on this forum. Hopefully he can give you the advice needed!
ThatNewGuy, you haven't posted your real name, how could we have any idea of who you are or who your girlfriend is
Pensions are very expensive. They are savings during work that you are going to live on for 20+ years. If you put €100 a month away for 30 years, growing at 6% per annum, you will have €100,450 at the end. Not enough to live on.
Charges wise:
4% contribution charge is the deduction to pay the advisor for setting it up. Under a PRSA structure, he probably got 15% commission i.e. €180 for setting up the policy. Not very much. The insurance company recoup that €180 payment over the years through that 4% deduction.
The 1% AMC pays the insurance company for light & heat, staff costs and some profit. There are also trading costs which are factored into the unit price and not disclosed.
You can always do it yourself through labrokers or the like and get 100% allocation and 1% AMC. Or pay an advisor a fee for impartial advice. But at €100 a month, it's probably not cost effective.
If the plan is to increase premiums over time, stick with it. If €100 is the most she is willing to contribute, I would question how beneficial it will be in the long run.
Thanks for that. I understand there needs to be cost recuperation and I would have expected 1% on any managed fund really, except either a passive consensus or index fund.
Two questions:
- Do you have a preferred online calculator to use?
- Are there standard contribution retrieval laws (e.g. after 2 years in the scheme she can claim back everything put in)?
Thanks
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