Pensions Fees

P

poppie

Registered User
Messages
12
Hi, there.
I'm sure this has been asked before. I just can't quite get my hands on the straight answer. Maybe there isn't one !
Recently got some advice regarding starting a pension.
This was in the proposal letter;
"
  • The administration on this plan carries a 1% per annum base Fund Management Charge. Additionally, you will receive 95% allocation of funds. There are no consultation charges for ongoing advise on this plan.
Am I understanding correctly. For everything €100 I pay into this pension plan €5 will go on fees/commission.

Is this the standard rate?

Please help!

Thank you
 
IMHO, this is a crazy high fee/charge.

Is it standard? I don't know, but it is fairly common, I suspect.

By shopping around you can get 100% allocation rate.



What type of pension is it? PRSA? RAC? AVC?
 
Protocol said:
IMHO, this is a crazy high fee/charge.

Is it standard? I don't know, but it is fairly common, I suspect.

By shopping around you can get 100% allocation rate.



What type of pension is it? PRSA? RAC? AVC?
Click to expand...
PRSA
 
poppie said:
PRSA
Click to expand...
Thank you. That was my initial instinct. BUT for a complete novice, this language is foreign and "shopping" around for financial products a minefield.

I might as well have "fool" written on my forehead

Any recommendations where one could shop for genuine good advice?
 
It sounds like a Standard PRSA you're being offered.

There are two types of PRSA (Standard PRSA & Non-Standard PRSA) and they have different charging structures depending on where you get it.

95% allocation rate is effectively an ongoing 5% subscription fee and this would be most common when going direct to providers or through a bank. PRSA's can be very expensive products with a charging structure like this.

If you're happy with a Standard PRSA then you can get one online with 100% allocation on an execution only basis (i.e. no advice at set up stage or ongoing) or you can get a Non-Standard PRSA with a broker on a similar basis for a fee.

Non-Standard PRSA's have more funds so they may have higher management fees.

Kevin
www.thepensionstore.ie
 
Last edited:
Thanks so much! Now why couldn't Google just tell me that! Lol
 
When the PRSA legislation was originally passed, the fee/commission was capped at 5%. So, guess what!!! Nearly all providers/brokers charge 5%.
Search here for "execution only brokers" and you'll get a few recommendations.

Does your employer offer any pension scheme? Usually, an occupational pension scheme offered by an employer has much lower charges than a personal PRSA.
 
Thank you! I will certainly do that search. No pension scheme offered by employer. So flying solo ...
 
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