Minimising AMC for pension

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FergusFinlay

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Hello,

I'm currently maxing out age related personal contribution limits in my pension scheme in work. This is an Occupational Pension Scheme (Master Trust). The terms are 97.5% allocation rate and 1% AMC, which isn't great from what I'm reading. I'm considering dropping my personal contributions to the minimum required to secure the maximum employer contribution, and then making my own AVCs into an execution-only PRSA where I can secure 100% allocation and 0.75% AMC. It will create some headaches in that it won't be deducted from payroll, and I'll have to upload tax certs to revenue myself to get the tax relief applied retrospectively, but at the moment it seems worth it to me to get the better pension terms.

Am I missing something here? Any concerns with following this approach? Any advice is greatly appreciated.
 
You are definitely doing the right thing.
There is a minimal amount of effort involved in setting up your AVC PRSA and arranging tax relief directly from your wages.
The effort is well worthwhile, not only to save yourself a lot of money, it is also a great learning process.
The knowledge you gain will be of benefit to you.
Read through past posts and seek extra information on this site.
 
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Why not ask your employer to shop around for a better deal for everyone.
We switched to an APT MasterTrust for 100% allocation and 0.5% to 0.7% AMC (depending on fund choice).
 
AJAM said:
Why not ask your employer to shop around for a better deal for everyone.
We switched to an APT MasterTrust for 100% allocation and 0.5% to 0.7% AMC (depending on fund choice).
Click to expand...
That sounds great. Can you share who that was with? Also, any important differences with an APT Mastertrust?
 
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