Pension charge query - Zurich

[Kramer]

Hi,
I have a small pension fund from a job I had for a couple of years back in 1995 - 1996
The policy is with Zurich with details below, my main query relates to the Management charge of 4.4% PA, is there any way of reducing this? I spoke to someone in Zurich but didn't really make any progress although my main query related to merging the pension with my current occupational scheme.
Anyone got any ideas on my next approach?
Is there a better plan within Zurich I should move the balance to with smaller charges?

Thanks

 

[GSheehy]

Looks like you only bought Inital units (because of the short term) and those are the ones that Zurich are recouping the commission they paid to the intermediary from.

My reading of that statement is that if you want to move it you take the hit of the €959 and transfer the €1,686 to something else. I'd still ask Zurich (or the person who sold it) if the €1,686 is the transfer value though. And, if the accrued charges are eliminated at Normal Retirement Date.


Gerard

www.prsa.ie

 

[Steven Barrett]

Sounds like the policy was sold in the days when 50% - 60% commissions was paid out. The life company recoups that money over the lifetime of the policy, hence the large management fee. If you transfer the money out, Zurich will take the money they are still owed from the plan. There is vey little you can do on this.

 

[Kramer]

Thank you both for taking the time to respond.
Sounds like I am looking forward to a €20 PA pension woo hoo!