CookieMonster88
New Member
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Hello, first time Forum user here so please take it easy on me if I have posted this incorrectly!!
I am looking for advice in relation to a SSAP situation and a general pension query.
I am a self-employed director with a number of pension policies. Overall my total funds are just north of the current SFT and I am at an age I could take benefits should I wish. Even if I do take benefits, I probably plan on continuing to work , albeit reducing my hours.
I consider myself reasonably financially savvy ( allowing for a few mistakes over the years - such as , against my own better judgement but still mea culpa, letting some of the hype around Irish property cloud my judgment back before the crash ) but overall , I have done ok.
However, and this is why I am here on Askaboutmoney , I am struggling with a decision in relation to my pension. I don't want to make a bad decision that is irreversible but equally I am being pressurised to make a quick decision.
Of total assets in pension of c. €2m about 40% is in my SSAP - The remaining 60% is spread across about 10 different policies ( mainly with the large insurance companies in a mix of company exec plans, PRBs and PRSA's) - a bit of an admin mess that I am seperately attempting to resolve and clean - up.
However, the SSAP is the pressing issue. _My financial "advisor " is a very large well-known broker - who I believe I no longer have a good relationship with and their advice I simply don't trust at this stage for a whole variety of reasons.. The registered SSAP administrator and trustee company has written now several times to me advising that I must URGENTLY start the winddown of my SSAP before the IORP II deadline of 31/12/2025 as they will cease providing services then.
Originally last year I had planned to go to post-retirement funds with an ARF but then the SFT rules changed so I decided it makes more sense to stay in pre- retirement funds and move the SSAP to a PRSA.
I do not need to take retirements benefits at this time , I could wait , maybe 7 - 10 years or even longer before I do so- should I wish but obviously plans may change and there is no point having it if you don’t spend it after all.
For an ARF with total assets of c. €2m. last year my broker was willing to do a deal as follows.
100.5% allocation from Aviva, AMC 0.65%,with exit charges 2/2/2/1.5/1
Brokers was getting a 2% initial commission , followed by trail commission of 0.2% p.a. , with a bonus of 0.05% year 6 onwards
But now as I have told them I plan to move the SSAP ( c. €800k) to a PRSA , they now want to charge 1% + 0.25% for "ongoing advice", -which seems like a very very bad deal - and I should mention that this same broker currently "manages" my other pension funds.
(I also have had a row with the broker as I decided to use Irish Life to help transfer 3 company exec policies this broker had originally set up, into a PRSA so I would have more control.-)
All in all, the broker relationship is not good, but the SSAP administrator (company whose name begins with “N” whose service is appalling won’t deal with me directly but only via the broker) .
So I am looking for advice that helps me optimise retirements benefits (perhaps stay in a PRSA until hopefully it reaches the €2.8m threshold, them move to ARF)
However, I don't want to let tax be the driving factor - anytime I have done that in the past , it has always ended badly.
(Incidentally as regards fund charges , I have a number of US based fund investments, outside of pension, that have an OCF of less than 0.3% so I view generally the AMC's /OCF's from the Irish fund providers/brokers as a rip – off.)
Having said that , as its my “pension” I want to be able to sleep at night so I do not want to anything too risqué.- been there , done that – having had accounts with Anglo Irish Private, Lehman brothers, Northern Rock etc and somehow managed not to get stung, I don’t want it to all go pear shaped now.!
I have spoken to other brokers in the past and some of them have mentioned for example. ITC – who seem to have low charges, but I know very little about them . How well regulated are they and indeed how good is the regulation?
I feel I am being screwed by my current brokers - they cannot even explain what exactly I get for their 0.,25% fee for "ongoing advice" and equally I feel I am being strong armed by the SSAP admin company into a quick decision.
Anyhow, I am open to suggestions/proposals/plan of action but I need to make a decision in the next week or so.
I am looking for advice in relation to a SSAP situation and a general pension query.
I am a self-employed director with a number of pension policies. Overall my total funds are just north of the current SFT and I am at an age I could take benefits should I wish. Even if I do take benefits, I probably plan on continuing to work , albeit reducing my hours.
I consider myself reasonably financially savvy ( allowing for a few mistakes over the years - such as , against my own better judgement but still mea culpa, letting some of the hype around Irish property cloud my judgment back before the crash ) but overall , I have done ok.
However, and this is why I am here on Askaboutmoney , I am struggling with a decision in relation to my pension. I don't want to make a bad decision that is irreversible but equally I am being pressurised to make a quick decision.
Of total assets in pension of c. €2m about 40% is in my SSAP - The remaining 60% is spread across about 10 different policies ( mainly with the large insurance companies in a mix of company exec plans, PRBs and PRSA's) - a bit of an admin mess that I am seperately attempting to resolve and clean - up.
However, the SSAP is the pressing issue. _My financial "advisor " is a very large well-known broker - who I believe I no longer have a good relationship with and their advice I simply don't trust at this stage for a whole variety of reasons.. The registered SSAP administrator and trustee company has written now several times to me advising that I must URGENTLY start the winddown of my SSAP before the IORP II deadline of 31/12/2025 as they will cease providing services then.
Originally last year I had planned to go to post-retirement funds with an ARF but then the SFT rules changed so I decided it makes more sense to stay in pre- retirement funds and move the SSAP to a PRSA.
I do not need to take retirements benefits at this time , I could wait , maybe 7 - 10 years or even longer before I do so- should I wish but obviously plans may change and there is no point having it if you don’t spend it after all.
For an ARF with total assets of c. €2m. last year my broker was willing to do a deal as follows.
100.5% allocation from Aviva, AMC 0.65%,with exit charges 2/2/2/1.5/1
Brokers was getting a 2% initial commission , followed by trail commission of 0.2% p.a. , with a bonus of 0.05% year 6 onwards
But now as I have told them I plan to move the SSAP ( c. €800k) to a PRSA , they now want to charge 1% + 0.25% for "ongoing advice", -which seems like a very very bad deal - and I should mention that this same broker currently "manages" my other pension funds.
(I also have had a row with the broker as I decided to use Irish Life to help transfer 3 company exec policies this broker had originally set up, into a PRSA so I would have more control.-)
All in all, the broker relationship is not good, but the SSAP administrator (company whose name begins with “N” whose service is appalling won’t deal with me directly but only via the broker) .
So I am looking for advice that helps me optimise retirements benefits (perhaps stay in a PRSA until hopefully it reaches the €2.8m threshold, them move to ARF)
However, I don't want to let tax be the driving factor - anytime I have done that in the past , it has always ended badly.
(Incidentally as regards fund charges , I have a number of US based fund investments, outside of pension, that have an OCF of less than 0.3% so I view generally the AMC's /OCF's from the Irish fund providers/brokers as a rip – off.)
Having said that , as its my “pension” I want to be able to sleep at night so I do not want to anything too risqué.- been there , done that – having had accounts with Anglo Irish Private, Lehman brothers, Northern Rock etc and somehow managed not to get stung, I don’t want it to all go pear shaped now.!
I have spoken to other brokers in the past and some of them have mentioned for example. ITC – who seem to have low charges, but I know very little about them . How well regulated are they and indeed how good is the regulation?
I feel I am being screwed by my current brokers - they cannot even explain what exactly I get for their 0.,25% fee for "ongoing advice" and equally I feel I am being strong armed by the SSAP admin company into a quick decision.
Anyhow, I am open to suggestions/proposals/plan of action but I need to make a decision in the next week or so.