Switching pension funds

[yvonne]

Looking for advice. I have been recommended by my broker to switch from a New Ireland pension to an Eagle Star pension based on the projected growths over the next 5 years. Looks like the New Ireland fund has a growth of -4.1% and Eagle Star has a growth rate of 0%. I have been paying in about €1500.00 per month over the last 17+ years. I will lose about €40K on the switch. any comments would be welcome

 

[DerKaiser]

Do you know what fund is being suggested?
Has your broker asked you about your attitude towards risk?
How exactly will you lose €40k, is it commission or a penalty?

Have to say I'd be suspicious of the brokers motives.

Also it doesn't sound to me like the broker explained that the growth in the past has no bearing on future performance. There's a lot of idiot brokers who show you past returns as if they were some grounds for what will happen in the future

 

[LDFerguson]

I have been recommended by my broker to switch from a New Ireland pension to an Eagle Star pension based on the projected growths over the next 5 years.

I'm a broker and I'd also be highly dubious of this advice. Switch providers based on tangible and verifiable facts that you understand if you want. But unless your broker is also a circus fortune teller on the side, s/he cannot tell you which of Eagle Star or New Ireland will outperform the other in the future.

 

[StevieC]

Agree with what Liam said. Switching based on future investment performance is kinda like gambling. Unless there is a tangible reason to change like decreased charges then I would be reluctant to switch if there is switching costs involved. New Ireland funds used to perform better than Eagle Stars, just because Eagle Stars are performing better at the moment, doesnt mean this will continue to be the case.




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