# Executive Pension Charges



## TimothyC (20 Nov 2006)

Hi all,

I am seeking to get the best deal possible from one of Hibernian, Canada Life, Standard Life or New Ireland.

I have seen the following charges for monthly contributions (€2.5k per month) and of course, I want to do better.

Allocation rate: 99%
Fund management charge: .75% of fund value
Plan management charge: 1% of fund value
Loyalty Bonus: basically, the fund management charge gets refunded or added to the fund if you stay in for 10 years.

In summary therefore, the annual cost is 1% of fund value and 1% of annual contributions.

Can I do better? Replies or PM's very much appreciated. Also, if anyone has done better than the above with Hibernian, then please PM me.

Many thanks,

TimothyC


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## F. Kruger (22 Nov 2006)

For a contribution of €30,000 per annum you should be targeting 100% Allocation and an AMC of between 0.75% and 1% (maybe more if it's a specalist fund you are after) on a Execution Only basis.

I think that in the example above the annual charge would be 1.75% as you should be adding the AMC and the plan management charge together. That's pretty stiff. How is the advisor being remunerated(if there is an advisor).


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## TimothyC (22 Nov 2006)

This is direct with one of the pension companies - no middle man. 

Yes, it is 1.75% p.a. but one gets the 0.75% x 10 back if you stay in 10 years therefore the net charge is 1%.

I would really like to know if anyone has done better with the pension providers listed in my earlier post. I feel I should be doing better.....


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## F. Kruger (23 Nov 2006)

TimothyC said:


> I would really like to know if anyone has done better with the pension providers listed in my earlier post. I feel I should be doing better.....


 
Then why are you restricting yourself to the four companies above?


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## borat (23 Nov 2006)

You could get a better deal from a broker. When you go direct to Life Companies you tend to get the rack rate with no scope for a reduction. If you go via a broker he has discretion in relation to his remuneration and you can negotiate a better deal.


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## TimothyC (23 Nov 2006)

Thanks for the feedback.

Any brokers reading this thread - feel free to PM me if you can do a deal for me on Hibernian?


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## F. Kruger (24 Nov 2006)

Are you going to pay them a fee to set it up?


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## JJ2000 (24 Nov 2006)

I've a Canada Life exec pension, and I was recently very miffed at a couple of things, so I'd suggest you could try asking about the following:

- ask your intended provider as to the typical difference between the Nominal Value and the Transfer value of your scheme at any point in time (e.g. the transfer value can be 30% less than nominal)

- ask about initial versus accumulator units- these can have very different levels of charges

- ask how frequently you can be appraised of your fund values (e.g. can you see it direct over the web), and ask EXACTLY what information you'll be shown [esp. nominal vs transfer value]

- ask about switch costs (from one fund to another)

- what funds are available, do you have the basic choice of cash, equities, bonds, property, and what are the charges for each (they can differ)?

- from reading other posts on AAM, did you take a look at Quinn?

- at 2.5k per month did you consider an SSAP (although from reading other posts the charges on an SSAP might be a bit high)


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## TimothyC (24 Nov 2006)

F. Kruger said:


> Are you going to pay them a fee to set it up?


 
Well, if the overall deal to me is cheaper, then of course I would.


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## F. Kruger (30 Nov 2006)

TimothyC,

Did you get sorted?


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## TimothyC (30 Nov 2006)

No! I'm struggling to me honest. The pension companies are trying to confuse me I think. New Ireland are the most competitive on charges but I am nervous about their fund performance. With them out of the equation, I can't seem to do better than the charges outlined in my earlier post, i.e. the 1.75% (of which 0.75% gets refunded as a bonus in yr 10).


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## JJ2000 (1 Dec 2006)

Did you check into the initial versus accumulation units etc? transfer and nominal values?

Take a look as well at the askabout money guide

http://www.askaboutmoney.com/guide/ch06.htm


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## TimothyC (1 Dec 2006)

JJ2000 said:


> Did you check into the initial versus accumulation units etc? transfer and nominal values


 
I have looked into transfer values. 

Initial v accumulation units: no idea of what these are or their implications.


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## TimothyC (11 Dec 2006)

In an earlier post to this thread, I set out the charges for the scheme. One thing which I haven't yet clarifies relates to bid offer spreads. Does anyone know if Hibernian takes a slice using Bid Offers on their executive schemes when going into the fund or on subsequent transfers?


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