# Switching PRSA providers



## countrywoman (9 Dec 2010)

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.


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## Sumatra (13 Dec 2010)

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.


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## countrywoman (14 Dec 2010)

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.


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## Parkview (4 Jan 2011)

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.


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## countrywoman (7 Jan 2011)

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?


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## LDFerguson (8 Jan 2011)

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?


 
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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## oysterman (10 Jan 2011)

countrywoman said:


> I don't understand pensions at all.


I'm unconvinced that we should be recommending execution-only for this poster.


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## LDFerguson (10 Jan 2011)

oysterman said:


> I'm unconvinced that we should be recommending execution-only for this poster.


 
I agree, though Parkview mentions paying a fee for the setting up and thereafter no contribution charge.  Presumably this fee covers advice.


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