Switching PRSA providers

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countrywoman

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I started a PRSA with in 2008 with a local bank, paying 5% commission and 1% management fees. On advice, I'm now switching to a different company offering 3% commission and 1% management fees, which appears to be worth 12k extra at age 65.

Is there anything I should be watching out for, ie another year's broker's and intermediary fees? Or should I be delighted with this better deal? I don't understand pensions at all.

Many thanks for any advice.
 
Sorry Countrywoman, but what happens when you don't understand is that you get your fingers burnt. Please get a second opinion before you make any decision.
 
Thanks for your reply Sumatra.

I'm not really sure where to go to get a second opinion. My accountant had recommended an independant financial advisor who then put me in touch with the second PRSA provider so I'm not sure of his 'independence', it appears he'll be getting part of the commission.

I'll hold off starting the new PRSA until I'm more informed.

Thanks again.
 
Hi Countrywoman.
You should be looking at a basic fee for the set up of the PRSA at the start of the set up and then ALL your contributions go to your future pension. It is clearer and you know exactly where you stand. So Nil charges and the basic 1% annual management fee.
Happy New Year.
 
Thank you, Parkview, and happy new year to you too.

I'll certainly see if I can get all contributions to go towards the pension but on browsing around this website and others, I got the impression it's only self managed pensions that can get this nil charges rate?
 
countrywoman said:
Thank you, Parkview, and happy new year to you too.

I'll certainly see if I can get all contributions to go towards the pension but on browsing around this website and others, I got the impression it's only self managed pensions that can get this nil charges rate?
Click to expand...

Google "Execution only PRSA" and you'll find several firms offering PRSAs with 100% allocation and just the 1% annual management charge. They don't offer advice, though.
 
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