Hello,
I will turn 46 early next year. For almost three months now, I have been trying to find a pensions scheme to join to start saving for my retirement. Late, I know, but this is how it worked out.
Before I found the current financial advisor, recommended by a colleague, I have been talking to others – all tried to get me on a personal pension or a non-standard PRSA. I have also paid for a consultation with an advisor who provided lots of irrelevant copy + paste information with very little on what I have specifically asked for, and at the end he has commented that what he would get paid in commission would be very little compared to the tax saving I would get so he was not prepared to do ‘the enormous amount of work I have asked him to do’.
After some research, I have decided that the best option for me would be a standard PRSA (not the one offered by my current employer).
My intention is to pay 200 euro regular contributions per month and top up once a year, depending on how much I can put aside (we also intend to buy a property so we keep saving for the deposit as well).
My current financial advisor has offered a Zurich standard PRSA. Apparently this product meets my main requirements, including:
- no penalties for stopping and restarting contributions;
- no penalties if I need to reduce, increase or pause contributions;
- lump sum top ups are possible;
- can be transferred overseas (subject to certain criteria);
- it is appropriate for future purchase of an Annuity.
The financial advisor also said as follows:
- charges cannot be reduced, in fact – they cannot be changed;
- minimum amount I need to contribute is 10 euro per month;
- I can switch between investment funds (up to 4 free switches per year);
- there is no bid/ offer spread.
I have asked for a list of all charges and fees associated with the plan. The financial advisor wrote that 97% of the amount I will invest will be allocated to the fund, and there is an AMC of 1%. However, he followed up with an email stating that his commission is based on my allocation, which he suggested at 98%, and he offered me 2 options to chose from:
1. 5% initial commission and 1% renewal commission or
2. 2% initial commission and 2% renewal commission.
Is the financial advisor’s offer good for me? If yes, which one of the commission options should I chose?
I will be most grateful for comments and advice.
All the best,
Mona
I will turn 46 early next year. For almost three months now, I have been trying to find a pensions scheme to join to start saving for my retirement. Late, I know, but this is how it worked out.
Before I found the current financial advisor, recommended by a colleague, I have been talking to others – all tried to get me on a personal pension or a non-standard PRSA. I have also paid for a consultation with an advisor who provided lots of irrelevant copy + paste information with very little on what I have specifically asked for, and at the end he has commented that what he would get paid in commission would be very little compared to the tax saving I would get so he was not prepared to do ‘the enormous amount of work I have asked him to do’.
After some research, I have decided that the best option for me would be a standard PRSA (not the one offered by my current employer).
My intention is to pay 200 euro regular contributions per month and top up once a year, depending on how much I can put aside (we also intend to buy a property so we keep saving for the deposit as well).
My current financial advisor has offered a Zurich standard PRSA. Apparently this product meets my main requirements, including:
- no penalties for stopping and restarting contributions;
- no penalties if I need to reduce, increase or pause contributions;
- lump sum top ups are possible;
- can be transferred overseas (subject to certain criteria);
- it is appropriate for future purchase of an Annuity.
The financial advisor also said as follows:
- charges cannot be reduced, in fact – they cannot be changed;
- minimum amount I need to contribute is 10 euro per month;
- I can switch between investment funds (up to 4 free switches per year);
- there is no bid/ offer spread.
I have asked for a list of all charges and fees associated with the plan. The financial advisor wrote that 97% of the amount I will invest will be allocated to the fund, and there is an AMC of 1%. However, he followed up with an email stating that his commission is based on my allocation, which he suggested at 98%, and he offered me 2 options to chose from:
1. 5% initial commission and 1% renewal commission or
2. 2% initial commission and 2% renewal commission.
Is the financial advisor’s offer good for me? If yes, which one of the commission options should I chose?
I will be most grateful for comments and advice.
All the best,
Mona