Query regarding AIB pensions

N

New_start

Registered User
Messages
2
Hello,

I’ve a query regarding a number of Personal Pensions Plans with AIB Ark Life.

I originally setup a pension in the late 90’s, then left the country and had to shut it down, it is currently worth €1K. When I returned to Ireland in 2001, I setup another pension and paid into it, but again closed it down as I decided to buy a house and needed to direct the funds towards that. It has a current value of €12K. In early 08 I decided to start my pension again where another policy was created and it is currently worth €15K.

My questions relate to the following:

Why were three policies needed? I understand with the first one as I shut it down, but for the 2nd one, this was suspended.
Should I have not been advised to merge my policies as I’ve just found out that I’m paying fees for all?
Can I ask for the fees back that were paid on the 2nd and 3rd policies?
Can I ask for compensation as the sum of the 2nd and 3rd policies would have gain more combined especially over the last 6 months?

Any thoughts or advise greatly appreciated and realise I should have been watching this more closely, but I thought that’s why I’m paying someone else for this service…I know, very naïve, especially as I make my way through numerous books on the banking sector.

I am also currently trying to setup a meeting with my pension contact with AIB.

Thank you
 
You should write to AIB/Ark Life and ask them

i) Why you were advised to set up a 'new' policy each time
ii) What the initial and ongoing charges are on each policy
iii) What fund/s each of the policies are invested in and what the associated charges are

If you feel that there was no 'reasonable' reason why you should have three different policies (based on their reply), you should take issue with them first. If you are not happy with their explaniation you can then refer the matter to the Financial Services Ombudsman.

It should have been possible to reinstate either of first two policies. I assume that you dealt with a different advisor each time you went back to them(?).

It may well be that the charging structure on the first policy was more prohibitive than the latter two or it may have had something to do with the remuneration system to the advisor.

In any event, if you are comfortable with selecting the pension product and funds that suit you best you can buy an 'execution only' pension product online that does not have contribution charges (up to 5%) or policy fees. There would be an annual management charge of 1%.

If the ongoing charges on the existing policies are greater than 1%, you could also look at transferring the existing policies into a new low-cost plan.

GS
 
Hi GS,

Appreciate the reply. Had a meeting with my advisor yesterday with the following results:
  • All funds will be merged for ease of tracking from today
  • Fees related to the creation and managements of the funds were and are seen as one and not three different policies set at 1.5% in total and not individually
Regarding a self administation pension, I would need €80K-€100K to make it worth my while something I will target in the next 2-3 years all going well through increases and shifting of other savings at the right time. No managment fees with this, but would be taking on stockbroker and banking charges.

Thanks again,

Stephen
 
New_start said:
Regarding a self administation pension..
Click to expand...

Just to clarify : There are two ways of buying a pension i) Advisory Service - where you need help from an advisor in selecting a provider, product and funds and ii) 'Execution Only' Service - where you choose the provider, product and funds

You can reduce the costs of the product by availing of the latter.

I think you may have misread 'execution only' as 'self administered'.

GS
 
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