PRSAs don't necessarily have much higher charges - it's possible to get some PRSAs for 0%/1%. If the personal pension plan is flexible (e.g. you can stop/alter contributions without penalty) then I don't necessarily see any major pitfalls versus a PRSA other than not being able to transfer into another PRSA later and (as mentioned elsewhere) consolidating pensions isn't always necessarily a no brainer and there is no harm (other than the possibility of a little extra admin hassle) in having more than one pension albeit normally only one accepting contributions at any one time. Remember that you can claim tax and PRSI relief on standalone PRSA or personal pension contributions.Just wondering if I can get access to the same index tracking funds through a personal pension for 0% contribution and 0.75% management fee, is there any reason I should look at a prsa which will have much higher chages to access the same funds?
This is wrong and if an AA told you this then this is disgraceful - are you sure that he wasn't actually a tied agent? 5%/1% is the maximum that can be charged on a standard PRSA but as evidenced by many other threads here on AAM you can get 0%/1% easily enough. Try www.prsas.ie for example or maybe www.prsacentre.ie or www.labrokers.ie. The latter two will probably charge an arrangement fee but www.prsas.ie leaves it up to you if you want to make a charitable donation in lieu of arrangement fees.Also, I spoke with an authorised adviser this morning. He began by telling me that prsas had a 5%/1% charge and that was it that no reduction could be found on this anywhere.
Yes - this guy sounds clueless.I asked for advice on this and he said " we'll get the previous performance charts and see then". But pst performance does not etc... Does this seem to be poor or am I expecting too much for my money? Should I be moving on to another adviser?
Yes, I'll be 26 next month and was thinking of contribution around 400 a month (including tax relief). As for the index tracking funds, I was hoping to pay for some advice on those. I'd like to spread my risk so I think that American, Europe, UK, Japan and Asia ex-Japan would be the ones to go with. The question is how to spread my money over these funds. I believe that irish equity is available but I'd be slow to put anything into that given that fact that I live and work here already. I had only looked into this through prsa's but if I can get access to these funds with lower charges through a personal pension, is there any reason I shouldn't go down that route?Are you willing to disclose your age, the contribution level you're thinking about and the index-tracking funds you're looking for?
On the other hand presumably it's possible to chop and change and have multiple pensions over time? I am in this situation myself (e.g. paid up personal pension plan from when I was employed but no occupational pension was provided, buy out bond containing previous occupational pension savings transferred in, PRSA alive and kicking etc.). For example if the original poster chose a personal pension plan but later entered employment where a PRSA or occupational scheme was on offer then they can park the personal plan (assuming it allows this without penalty etc.) and participate in the latter. Of course having multiple fragmented pension policies does mean a bit of extra admin hassle for tracking and managing them all which might not suit everybody...However, a PRSA has an advantage that an employer can make contributions directly to it, if that's an issue for you.
It's possible to get a Personal Pension with a policy fee of €4.25 per month, 100% allocation, no bid/offer spread and annual management fee of 0.75% for index-tracking funds. This would be on a zero commission basis, so a fee would be payable.
I believe that's what he means. A fixed once off fee for arranging the plan. At least check that it's once off and doesn't also take a slice of any ongoing lump sum contributions etc.When you say a fee, what do you mean? The brokers fee to set up the pension plan?
How were PRSAs any less flexible than this personal pension plan?Also how flexible is the pension as it sounds very like a good deal, much better than any prsa's I've found if it can match the flexibility.
I have accumulated over the years ... one buy out bond, two personal pension plans and two PRSAs one of which is actively accepting contributions.Am I right in saying that I can have as many pensions as I want but only 1 prsa
If you need advice then that is the way to go.I think the best way to go is to pay a fee for advice on the right product/funds/spread of the funds and the head for an execution only broker. What do you think?
How were PRSAs any less flexible than this personal pension plan?
Many (most?) personal pension plans provide such flexibility these days as far as I know.I meant that if the pension could match the prsa's flexibility, being able to stop payments for a while, or all together etc.
Many (most?) personal pension plans provide such flexibility these days as far as I know.
When you say a fee, what do you mean? The brokers fee to set up the pension plan?
Am I right in saying that I can have as many pensions as I want but only 1 prsa, or is there a restriction as there is with prsa's.
I think the best way to go is to pay a fee for advice on the right product/funds/spread of the funds and the head for an execution only broker. What do you think?
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