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Really? You had absolutely no alternative way of arranging pension (and/or AVC) cover? Sounds odd. Unconstitutional even.To give you an example I was FORCED to make my AVCs through Marsh Ireland (Broker) as our profession and few other professions (without naming) in our category were forced to use Marsh as there is NO ALTERNATIVE broker available.
Regardless of the charges are you sure that they are supposed to be giving independent, professional pension investment advice on an individualised basis?I have been contributing for over 12 years and they gave me advice to invest the pension AVC money in the secure performance fund (with low returns) as I initially said I wanted to play safe as the markets then were volatile. They never returned to me thereafter to suggest changing my funds to a riskier one or reviewed my pensions on a yearly or two yearly basis. So what are we paying 5% to Marsh for ??
Could you not have opened an individual PRSA, personal pension plan (Retirement Annuity Contract) or SSAP?Why does the govenment not take note of this especially if you cannot administer your own PRSA (applicable to certain professions)???
Why is the government not cutting down on this heavy commission we pay these brokers? The pension board told me unfortunately we did not have any alternative brokers in our profession and we had to go through Marsh.
Yes it is! 25% of year one contributions plus 4% of each subsequent year's contributions is crazy in my opinion. Especially when you can relatively easily get a PRSA or personal pension plan with charges like 0% on each contribution and just an annual management fee of about 1%.The broker only makes real income in the first year. 25% Initial commission is paid on the total first year premiums. So if you pay €500 per month that's €1500 commission. After year 1 the commission is probably 4% or €240.00 per year. This is not much
OK. Many pension products levied hefty charges back then. I think that was probably the tail end of the worst of these charges (e.g. 50%-200% of of the first year's contributions in charges, "initial" units, other opaque charging structures etc.)?CLubman Thanks. I am talking about starting my Additional voluntary contributions way back in 1998 I think. There was no PRSA then.
Well haven't they since the 90s by bringing in new pension options including, for example, standard PRSAs which have capped charges?Why is the government not cutting down on this heavy commission we pay these brokers?
A PRSA deal involving 100% allocation of premiums and 0.75% annual management charge should be easy enough to avail of.
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