Sole Trader PRSA- lowest AMC fees for yearly lump sum

[troublesome-inq]

Hi,

sole trader here who is looking to set up execution only PRSA. I've researched and it looks like Royal London is a one of the market leaders in lowest fees for monthly contributions.

However given the nature of my work( high fluctuations month to month) i would be more comfortable with a single lump sum per year(<8k) . Royal London's allocation for transfers is 98%.

What would be a good option here? just looking for a passive tracker to invest in so funds should be fine across the majority of providers.

thanks!

 

[Dave Vanian]

You can get a Zurich Life PRSA with 100% allocation and 0.75% annual charge from www.prsa.ie or www.labrokers.ie

If you have a good trading year and your lump sum is >€10,000 Royal London allocation will be 100%.

 

[troublesome-inq]

thanks @Dave Vanian . that looks like the best option alright given my constraints, i will take a look at them

 

[Fortune]

Royal London's allocation for transfers is 98%.

This doesn't look right. Contribution charges aren't allowed on transfers to PRSAs. Not relevant to your request anyway.

 

[Dave Vanian]

This doesn't look right. Contribution charges aren't allowed on transfers to PRSAs. Not relevant to your request anyway.

I suspect the OP meant "transfers" as transferring a lump sum contribution into Royal London's bank account as distinct from a monthly Direct Debit.

 

[troublesome-inq]

i received this information regarding RL "Transfers get 100% allocation but only Single Contributions of €10,000 or more get 100% allocation. If you did €10,000 this year as a single contribution and wanted to add €5,000 next year then the €5,000 would only be eligible for 98% allocation as Single Contributions are always treated separately for determining the allocation band." and assumed it meant both transfer from existing PRSA to RL and yearly contributions... hence why im looking at alternatives if this is correct.

 

[ClubMan]

FWIW:

There are just two allocation rates (98% - less than €100pm or €10,000 lump sum - & 100%) and AMCs can go up as far as 1.50% pa. There is no Standard PRSA option, just Non-Standard.

This thread may also be worth reading:

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

 

[Dave Vanian]

assumed it meant both transfer from existing PRSA to RL and yearly contributions...

No - transfers from other PRSAs or other pension plans will always get 100% regardless of size. New contributions of <€10,000 will get 98%.

 

[Fortune]

assumed it meant both transfer from existing PRSA to RL and yearly contributions...

No, it applies to neither. It applies to ad-hoc single premiums.

 

[ClubMan]

and assumed it meant both transfer from existing PRSA to RL

PRSA transfers from one PRSA provider to another cannot be subject to charges including less than 100% allocation rates.