pconsidine
Registered User
- Messages
- 29
I am 58 and self-employed. My only retirement provision is a modest public service pension from my time working for a semi-state. Last year I had €18K and decided to invest this money in a pension fund that I could access at 60. I know nothing about private pensions so I went to my own Permanent TSB branch who put me in touch with their pensions advisor. I told the advisor that I wasn't interested in risky investments and my priority was maximum security for my money rather than the possibility of big returns. I told him that I intended to retire in three years time at age 60.
He told me he had a cash PRSA called Complete Solutions PRSA Options (Global Cash Fund Series E) which was suitable. I signed up.
I have just received my 1st half-yearly statement and I have that sick feeling which comes over you when you realise you have been conned.
The current value of my fund is €17,404. The fund performance is 0.2%. This represents about €30 on the approx. €17,500 Irish Life invested for me after taking their up-front initial charge. Now, the big problem is that I am now informed that Irish Life is charging an additional management fee of €170. In oither words, for an annual return of €60 per annum they are charging me €170!
Given the short 3 year life of this pension, and the initial fee, and the ongoing management fee, it is a racing certainty that my fund will be worth less than €18K when it matures - even if the performance of the fund-managers drastically improved. Putting it another way, not only is this pension not 'low-risk', it is 'certain-loss'. That's very high risk in ordinary language. I have been told that the sort of return that would see me merely realize my investment (i.e. zero return) is highly unlikely with the returns historically produced by these sort of cash funds. Is this correct.
Is this sort of "advice" common in the pensions industry?I sell goods that must be fit for purpose or I get sued. Is Irish Life subject to the Sale of Goods and Supply of Services legislation? Is the Ombudsman an effective remedy for my problem?
Have I any comeback or good options? Please advise.
Many thanks, P Considine
He told me he had a cash PRSA called Complete Solutions PRSA Options (Global Cash Fund Series E) which was suitable. I signed up.
I have just received my 1st half-yearly statement and I have that sick feeling which comes over you when you realise you have been conned.
The current value of my fund is €17,404. The fund performance is 0.2%. This represents about €30 on the approx. €17,500 Irish Life invested for me after taking their up-front initial charge. Now, the big problem is that I am now informed that Irish Life is charging an additional management fee of €170. In oither words, for an annual return of €60 per annum they are charging me €170!
Given the short 3 year life of this pension, and the initial fee, and the ongoing management fee, it is a racing certainty that my fund will be worth less than €18K when it matures - even if the performance of the fund-managers drastically improved. Putting it another way, not only is this pension not 'low-risk', it is 'certain-loss'. That's very high risk in ordinary language. I have been told that the sort of return that would see me merely realize my investment (i.e. zero return) is highly unlikely with the returns historically produced by these sort of cash funds. Is this correct.
Is this sort of "advice" common in the pensions industry?I sell goods that must be fit for purpose or I get sued. Is Irish Life subject to the Sale of Goods and Supply of Services legislation? Is the Ombudsman an effective remedy for my problem?
Have I any comeback or good options? Please advise.
Many thanks, P Considine