I have an SSAP and pay less than 800 pa for trustee/administration so you should shop around. Charges based on percentage of the fund is very bad value so avoid them, anyhow % charges is contrary to the idea of a 'self' pension fund, its the member that makes the investment decisions and takes the risks so there shouldn't be any % charges.
Dave2k; you ask about performance differences between the two schemes and its not possible to do this. If you have an SSAP then you are 100% responsible for the performance of the fund because your the investment manager and make all decisions (are you prepared to put the time into this?) with a PRSA you put the money in a fund which is operated outside your control.
So some of the things you need to be clear about regarding an SSAP;
1. The member is the investment manager and is responsible for all profits and losses of the pension. Therefore you need to enjoy this aspect and work at it (all be it part-time)
2. SSAP is very tax effective and can have very cheap annual charges.
3. Contributions can be made from two sources, the company and personally. Both have tax advantages and an actuary will work the amounts based on salary and age. Is your company profitable enough to make decent contributions?
4. Setting up an SSAP to put funds on deposit is contrary to the whole idea and will not make enough money for retirement. Don't waste your time on that one.
It does. Thank you.hope this helps.
As an approximation, the annual contribution at your age for Revenue max benefits would be about €27k. If you have "past service" it might be possible to add an additional lump sum contribution (say €23k) in the first year.
But we need to get specific numbers run based on your exact circumstances.
As for the PRSA v SSAP, I think you need to consider the investment strategy (longer term beyond the next 12 months) as well as the charges. Yes your SSAP could invest into a deposit account, but with ECB rates likely to be below 2% by early next year, its hardly a long term investment strategy for a 25 year old. If in the longer term you believe that you will have the time and expertise to make the investment calls, then the SSAP may well be the way to go. If you are only looking at the SSAP as a route for holding Cash for 12 months, then the upfront costs may not be justified.
My advice would be to decide on the likely longer term investment strategy (whether you will manage the funds or whether you will hire a fund management company) and then establish the most appropriate long term structure.
Conan
As an approximation, the annual contribution at your age for Revenue max benefits would be about €27k. If you have "past service" it might be possible to add an additional lump sum contribution (say €23k) in the first year.
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