# "Executive" Pension Plan - Excessive Charges?



## kramer2006 (30 Nov 2006)

Hi folks. I need some advice on pensions. Would appreciate some comments from anyone familiar with "Executive" pension plans, that is, pensions aimed at company directors & self-employed.

I am self-employed. I have an executive pension plan with one of Ireland's largest life offices. In short, I'm concerned that I am being fleeced by excessive charges. I am paying 5% on every contribution I make, both regular and single premiums. I am also paying an annual management fee of 1.35% for all of the funds I have invested in. These charges seem to be a lot higher than those I've read about on AAM.

Many of the posts I have read on AAM have mention "haggling" with pension providers over charges. I wasn't aware this was acceptable practice. In addition, when I took the plan out 2 years ago, I (foolishly) did not question the charges, believing them to be pretty standard.

So, my questions are:

1) are these charges excessive? and just HOW excessive are they?
2) can I transfer my company pension to another provider? how easy/difficult is this likely to be?
3) many AAM posts have suggested taking out a pension through a broker who will negotiate a better rate? Is this the done thing?

I would appreciate any information as I am concerned these charges might obliterate my (modest) pension fund.

Many thanks indeed.


----------



## TimothyC (30 Nov 2006)

Take a look at my earlier thread to see what charges I am being quoted. I will let you know how I get on once a deal is done. Sounds like you are being totally ripped off. Sorry.


----------



## F. Kruger (1 Dec 2006)

kramer2006 said:


> 1) are these charges excessive? and just HOW excessive are they?


 
Did you receive advice on the pension at outset? If so how was it paid for?


----------



## kramer2006 (1 Dec 2006)

TimothyC said:


> Take a look at my earlier thread to see what charges I am being quoted. I will let you know how I get on once a deal is done. Sounds like you are being totally ripped off. Sorry.


 
Wow! A 99% allocation rate. Big difference compared to my 95%.  But how do Hhibernian compare in terms of fund performance? What costs were the other companies quoting, New Ireland etc.?

FKruger, I went straight to the pension company and asked for their directors pension, didn't even look at price. Very naive I know, but I'm paying for it now.


----------



## kramer2006 (1 Dec 2006)

The following doc from IFSRA has an informative section on Pension charges:

[broken link removed]

Apparently, the allocation rate can be anything from 90%-105%.


----------



## F. Kruger (1 Dec 2006)

kramer2006 said:


> 2) can I transfer my company pension to another provider? how easy/difficult is this likely to be?
> 3) many AAM posts have suggested taking out a pension through a broker who will negotiate a better rate? Is this the done thing?


 
Yes, you can transfer. You could negotiate a fee or preferential allocation rates to pay for the transaction, if you were to use a broker. There is annual documentation that also has to be dealt with.

You just have to find someone that is interested in handling it or else DIY with a pension provider that will take the business.


----------



## kramer2006 (1 Dec 2006)

F. Kruger said:


> You just have to find someone that is interested in handling it or else DIY with a pension provider that will take the business.


 
Thanks FKruger. Am I likely to encounter difficulty getting a broker/pension company to transfer my pension?


----------



## Guest126 (1 Dec 2006)

F. Kruger said:


> You just have to find someone that is interested in handling it or else DIY with a pension provider that will take the business.


 
You all make it sound so complicatd to find someone willing to take the business!

I am more than "interested in handling" the business.


----------



## F. Kruger (1 Dec 2006)

kramer2006 said:


> Am I likely to encounter difficulty getting a broker/pension company to transfer my pension?


 
You could transfer it to Quinn Life.


----------



## kramer2006 (1 Dec 2006)

F. Kruger said:


> You could transfer it to Quinn Life.


 
I'd certainly like to. I am planning on opening a regular investment plan with them in the near future. I may go the whole hog and transfer the pension also.

The only problem is ... am I better off going through a broker anyway? Are they able to shave off a % or so from the provider's commission?

Can anyway recommend a reputable broker?

(I'm absolutely kicking myself over this, just goes to show, it pays to shop around ...)


----------



## kramer2006 (1 Dec 2006)

CapitalCCC said:


> I am more than "interested in handling" the business.


 
Capital, are you a broker? If so, can you PM me with some details on what kind of plan you think you can offer me?

Many thanks.


----------



## DirtyH2O (1 Dec 2006)

I went through a execution only broker and did very well - good allocation rate and mngt charge. It's the best way imo. CapitalCCC offers the same service and is the only one on AAM who does - despite getting a lot of haggling from the money conscious posters here


----------



## Guest126 (2 Dec 2006)

Thanks (I think!) Dirty H2O


----------



## BobbyFowler (4 Dec 2006)

Yep, I've just closed out of my Irish Life Plan (5% on what you put in + 2% per year) and switched the funds over to Quinn Life - there are no entry or exit fees and then it's 1-2% depending on the markets you invest in.


----------



## kramer2006 (12 Dec 2006)

BobbyFowler said:


> Yep, I've just closed out of my Irish Life Plan (5% on what you put in + 2% per year) and switched the funds over to Quinn Life - there are no entry or exit fees and then it's 1-2% depending on the markets you invest in.


 
Hi BobbyFowler. I'm interested in how you went about this and whether you encountered any difficulty. Did you go through a broker or did you approach QuinnLife directly. Is the 1-2% charge charged ANNUALLY on the fund value, or is this a charge on the premium?

When you closed your Irish Life plan, how did you transfer the amount to the new pension plan? Did Irish Life send you a cheque? Did Irish Life penalise you for closing the plan, or did you get the full value of your funds?

Apologies for all the questions!  

Best regards.


----------

