Seeking advice : Aviva PRB and Aviva Directors PRSA

[MichaelMurphy70]

I'm in my 50s now and have a pension pot of €130k today in 3 different pension plans from former employers. I now have my own limited company and will be able to save about €1000 a month going forward into a pension.

I've been advised to:

1. Consolidate the existing pensions into a personal Aviva PRB
2. Have my limited company set up a Directors' Aviva PRSA for the €1000/month going forward

Both would have an AMC of 1.3% and apparently 100% allocation rate and no transfer fees in. The funds inside are actively managed with >90% equities.

I've seen some execution-only PRSAs with lower fees, and I'm tempted to go down that path, but I'm wondering if its worth it considering the comparatively small sums involved in my circumstance. Do the fees above seem reasonable ? I've no idea if I'm being taken advantage of or if they are fair.

many thanks for any thoughts or comments

 

[ClubMan]

I've been advised to:

By whom and what reasons did they give?

 

[Smoneen]

Regarding the 3 pensions from former employments:

1: are these all for the one employment or different/ unrelated employments?
2: what is the current amc on these plans?
3: what funds are these invested in? How does the performance these funds compare to the ones being proposed? Have they stated any particular reason for moving on this basis?
4: what form of scheme / arrangement are they currently held in e.g Group DC scheme or OMA, are they currently in a master trust arrangement? (Assuming these are not DB benefits)
5: have you waived your right to a tax free lump sum from any of these employments?

There is no such thing as a directors PRSA. A PRSA is just a PRSA under which there are rules for the level of employee and employer contributions that can be paid to the scheme.

The amc that you are being quoted seems high and it would certainly suggest an ongoing trail commission for the advisor is included. What services will they be providing for you after the set up to justify this?

 

[MichaelMurphy70]

Thanks for the responses. The advice was given by a Financial Advisor at a broker who has a QFA qualification.

1. The pensions are for different and unrelated employments from years ago.
2. I'm going to sound foolish here, but I didn't know until I looked it up, they are .85%
3. They are in equities, for example Zurich Prisma 3. The broker believes an actively managed pension will deliver better results over the long term.
4. I'm not sure, they are with Zurich and Irish Life (Friends First). They're not Defined Benefit
5. No not yet, this wasn't discussed as an option.

That's good to know. I think based on that feedback that I need to speak to some different people and compare options. Much appreciated!

 

[ClubMan]

Both would have an AMC of 1.3%

Probably the best (cheapest) PRSA in the world?

The launch of Royal London Ireland's new pension product in late November 2024 seems to have finally offered customers accessible, lost-cost PRSAs. Through an execution-only broker, it is relatively easy to access a passive fund AMC of 0.55% or significantly lower on larger transfers. Taking...

www.askaboutmoney.com

 

[Fortune]

QFA qualification

Nothing special.

they are .85%

Broker is getting .45% of your fund annually. What services are they giving you for this?

They are in equities, for example Zurich Prisma 3.

Partly in equities

broker believes an actively managed pension will deliver better results

I hope they're referring to choosing the asset split rather than stock picking