# Best Direct Pension Investment



## SmmQ0105 (14 Apr 2011)

One man company, contributing €35k pa over the past 5 years through a broker into my Company Pension Scheme.  Disillusioned with returns and charges.  Want recommendations for a direct pension investment with no middle man, deal directly with pension provider with minimal charges.  Any suggestions ?


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## David Quinn (14 Apr 2011)

One of the Execution Only PRSA providers will allow you to keep your costs relatively low, such as prsa.ie (I have no link whatsoever to them). These should have no entry charges and a low management fee. I'm sure there are a number of threads already covering low cost pension options, but search for 'execution only PRSA. I haven't figured out yet how to link to another thread!

The downside of most 'execution only' and low cost PRSA's are that you are limited to a selection of the life assurance company funds and there is a fixed management fee, usually 0.75% - 1% for basic managed and equity funds. The Zurich PRSA seems to be the most popular with the low cost providers.

Depending on your fund value and investment requirements, a small self administered pension could also be an option. The costs are high to start with but it can save you a significant amount over the longer term, particularly if using ETF's, Direct investment and Deposits. Set up costs range from €1,000+VAT upwards, and trustee fees vary depending on the complexity of investments within your portfolio, but can be as low as 0.25%.


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## Baracuda (14 Apr 2011)

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SmmQ0105 said:


> One man company, contributing €35k pa over the past 5 years through a broker into my Company Pension Scheme. Disillusioned with returns and charges. Want recommendations for a direct pension investment with no middle man, deal directly with pension provider with minimal charges. Any suggestions ?


Hi Smm

If you are a Director of business a PRSA is not a suitable product for you indeed PRSA's are not really a suitable product for anyone who can avail of a Company Pension due to the unfair PRSI/USC charges for PPP/PRSA's.

If you are contributing 35K p.a. and have a good understanding of pension/wealth management/investment then the Excution Only option is a viable route, the charges would be c. 0% of each premium and a fund charge of about 0.85% of the accumlated fund per year, a.k.a. Annual Management Charge (AMC).

If like most people you do not have a particular interest in this area or too busy looking after your business you can go down the advice route, based on your premium you would not be looking to pay no more than 2% of your premium and 1% AMC. With these charges in mind you would expect to have your pension advisor on speed dial and you expect to meet at least once a year preferrably twice indeed. Most of the major pension providers have self invested funds now which means that you directly invest in regulated markets (eg public quoted companies etc) as well as property 

Both options would not include policy fee/Pension Board fee, which would vary between different providers. Good luck!


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## Marc (14 Apr 2011)

Alternatively there is a new provider on the market offering directors pensions with no set up costs at all and access to a large range of funds with annual management charges starting at 0.12%pa and typically around 0.3%pa to 0.4%pa

Includes some of the biggest fund management groups in the world and no cost switching between funds. 

Marc


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## Baracuda (15 Apr 2011)

Marc said:


> Alternatively there is a new provider on the market offering directors pensions with no set up costs at all and access to a large range of funds with annual management charges starting at 0.12%pa and typically around 0.3%pa to 0.4%pa
> 
> 
> Marc


Hi Marc

Would you mind PM me the details of this provider if you don't mind as I have not came accross them yet!

Thanks, 

Barcuda.


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## GSheehy (15 Apr 2011)

David Quinn said:


> One of the Execution Only PRSA providers will allow you to keep your costs relatively low, such as prsa.ie


 
The products available through the site are not restricted to PRSAs. Personal Pension (RAC), Executive (Directors) Pension, ARF (AMRF) and Pension Retirement Bond are also available.


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