Hi all,
I signed up to a pension scheme with Zurich through a financial advisor recommended by the company. I contributed about 7% of my gross to this fund for the year. I got my first year financial health statement back from Zurich and was horrified to discover that a little over half remained, in what seemed like a good year, financially.
In the heal of the hunt, it turned out that there's a clause on the 4th paragraph of the 12th page of documentation he sent to me (after I signed up I might add) that says:
"Percentage of Premiums used to purchase units at the Ruling Offer price:
First 12 monthly premiums 53%
Subsequent Premiums 99%"
In order to break even on this exception level of tithe, I'll have to invest at this level for 4 more years; if I try to speed that up, say by doubling my contributions, my FA will take 47% of that too! He has nothing to lose if I want to fire him either, he's taken 32 years commission in 12 months, and reserved the ability to take his slice of every increase I make until I'm 64? When he's extremely unlikely to be in business.
As I asked him myself, who'll be earning this extraordinary commission in 2040?
Is this even remotely usual? It seems excessive in the extreme. I feel like I've been scammed.
What's more, there's little to be gained from firing my FA either, he took 30 years' commission up front, it saves him quite a bit of hassle not to have to answer my questions.
If this is common practice, it's no wonder people don't have pensions.
I have to say, I find them both shocking and punitive. I could just be naive, which is why I came here before going any further.
Buyers of pensions; did you pay half of your Premiums to a broker/advisor? What happens if you increase your premium?
I signed up to a pension scheme with Zurich through a financial advisor recommended by the company. I contributed about 7% of my gross to this fund for the year. I got my first year financial health statement back from Zurich and was horrified to discover that a little over half remained, in what seemed like a good year, financially.
In the heal of the hunt, it turned out that there's a clause on the 4th paragraph of the 12th page of documentation he sent to me (after I signed up I might add) that says:
"Percentage of Premiums used to purchase units at the Ruling Offer price:
First 12 monthly premiums 53%
Subsequent Premiums 99%"
In order to break even on this exception level of tithe, I'll have to invest at this level for 4 more years; if I try to speed that up, say by doubling my contributions, my FA will take 47% of that too! He has nothing to lose if I want to fire him either, he's taken 32 years commission in 12 months, and reserved the ability to take his slice of every increase I make until I'm 64? When he's extremely unlikely to be in business.
As I asked him myself, who'll be earning this extraordinary commission in 2040?
Is this even remotely usual? It seems excessive in the extreme. I feel like I've been scammed.
What's more, there's little to be gained from firing my FA either, he took 30 years' commission up front, it saves him quite a bit of hassle not to have to answer my questions.
If this is common practice, it's no wonder people don't have pensions.
I have to say, I find them both shocking and punitive. I could just be naive, which is why I came here before going any further.
Buyers of pensions; did you pay half of your Premiums to a broker/advisor? What happens if you increase your premium?