Managing own pension to avoid fees?

[OnTheDitch]

Hi, I’m hoping somebody can point me in the right direction.

I have savings and some of my monthly salary that I wish to invest in a pension product. My current job is on a contract basis and hence I don’t have a pension from employer.

I already have what I use as an investment account with NIB (which allows me to buy shares, ETFs etc). However there are obviously significant tax benefits to having one’s savings invested in a pension rather than in a private bank account (with the proviso that the money benefiting from the pension tax breaks can’t easily be accessed).

Is there any way I can put the portion of monthly salary and savings I wish to use as my pension into some kind of pension product that I manage myself? I’m specifically looking to avoid (management) fees and make my own investment decisions. Or does legislation mean that if I want the benefits of a pension there is no way around paying the hefty fees of a big pension company?

 

[Conan]

In order to benefit from the tax breaks (and ensure that the funds are administered in accordance with the rules) you have to establish an approved structure. This means using a Life Company or similar structure.
Whilst there are structures which allow you to act as the investment manager (Self Directed), you will still have to pay some costs to the institution administering the plan.
Since you are self employed you can either effect a Personal Pension Plan or a PRSA.
As for the fees (they dont have to be "hefty") you can get arrangements with annual fees of circa 0.75% p.a of the fund and no up-front charge (no premium charge). But remember that if you go the Self Directed route you may also have to pay dealing costs (depending on what you invest in).