Pension charges - What is a good deal

[Steven Barrett]

There should be a legal requirement for all pensions (or financial products in general) to have a little fact box displayed prominently on all literature or websites relating to the product.
(A bit like the nutritional value things on ready-meals where they show fat, salt, protein, etc.)
It should have: initial charge, AMC, amount going to broker, set up fee, cancellation fee.
And don't allow any other charges that don't fit into the standard categories.
Also, have them colour coded too, just like a big red box for saturated fat on a chicken & bacon sandwich - any charge over 1% should be in red too as it's bad for your financial health!

I agree 100%. MiFID II regulations make companies display charges as both a percentage and as a monetary amount. But insurance companies aren't regulated under MiFID II so it doesn't apply to them.

The Central Bank has insisted on the mountain of paperwork and format of documents that have to be given to consumers so they have all the relevant information. It is an information overload and has made it easier for salesmen to bury their fees in all the paperwork.

On my Reasons Why statement, I have adopted the MiFID II disclosure of fees in both % and €. Just about where you sign your name, there is a box with the following charges based on your initial investment amount:

Allocation Rate
AMC
OCF (where available)
Policy Fee
Early Exit Penalties
Bluewater's set-up and ongoing fee

I concluded a long time ago that the most likely cause of a falling out with a client is over fees so I have always been 100% up front about them. And if someone doesn't want to pay for my advice, it probably wouldn't work out between us anyway.


Steven
www.bluewaterfp.ie

 

[Nova1919]

Hi guys, there is a link on the pensionsauthority website which allows you to download an excel file that will give you all the fees for PRSAs in Ireland.

(I would post the link but I'm blocked from doing so)

 

[KCRMoney]

Don't go near Irish life MAPS. Their fees are exorbitant. In the process of switching from them due to the fees charged

 

[amadan1000]

Don't go near Irish life MAPS. Their fees are exorbitant. In the process of switching from them due to the fees charged

I have my directors pension with Irish life and 50 per cent of it is in Maps.I was under the impression that the fees were in line with their competitors.What are the fees with your new provider in comparison to maps?