# Are these Pension Fees high?



## Sleahy (21 Jan 2015)

Hi,

My employer has offered to set up an Executive Pension for me and contribute Eur3,000 per year. He has asked me to do some research as to what I want.

I have contacted Zurich and had a guy who says he works directly for Zurich came out and offered the following:
Executive Pension - (No benefit in Kind and I can contribute when finances allow)
98% Allocation
1% Management Charge
Eur 3 per month policy fee.

Can I please ask are these fees and charges about right or are they high?

Thanks for your feedback.
Susan


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## TRS30 (21 Jan 2015)

Sleahy said:


> Hi,
> 
> My employer has offered to set up an Executive Pension for me and contribute Eur3,000 per year. He has asked me to do some research as to what I want.
> 
> ...



To my untrained eye they would seem high. 

You should be able to get 100% allocation and no monthly fee. An Annual Management Charge (AMC) of 1% is not terrible however not the lowest. 

My pension has an AMC of 0.55% and that is the only charge. This is a private pension through my employer.


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## Steven Barrett (21 Jan 2015)

The allocation rate is about right for a €250 per month pension. 

I wouldn't be happy with the policy fee though, that's another 1.2% of your premium. 

You are paying the advisors fees through commission on the pension. Ask you employer if they are willing to pay the advisor fee directly instead of it coming out of your pension pot. If they are willing to do that, you will get a better charging structure. 

Steven
www.bluewaterfp.ie


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## GSheehy (22 Jan 2015)

If you don't need advice on the product or investment funds, you can buy that product on an 'execution only' (no advice) basis online. Allocation rate 100% with no bid/offer spread so there's no entry/exit charges. The annual management charge is 1% (with the exception of external (Threadneedle) funds and SuperCapp Fund) and there's no policy fee. Because is an Executive Pension there is a Pensions Board Fee of €8.80 p.a.

If you need advice, you have to pay for it. You either pay for it via the allocation rate or separately by fee.


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## Sleahy (22 Jan 2015)

GSheehy said:


> If you don't need advice on the product or investment funds, you can buy that product on an 'execution only' (no advice) basis online. Allocation rate 100% with no bid/offer spread so there's no entry/exit charges. The annual management charge is 1% (with the exception of external (Threadneedle) funds and SuperCapp Fund) and there's no policy fee. Because is an Executive Pension there is a Pensions Board Fee of €8.80 p.a.
> 
> If you need advice, you have to pay for it. You either pay for it via the allocation rate or separately by fee.



Thanks for your advise. Where would I go about organising an execution only pension and would this be ok for someone who has little knowledge of the markets?

Who apart from Zurich would you advise that I could approach for an Executive pension with low fees? Every one needs to make a living so I am not looking for something for nothing, its is just as this is my pension to organise, I really want to make the most of it too.

Thanks,
Susan


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## Sleahy (27 Jan 2015)

Hi, An update on my fees.

I went back to the guy from Zurich and asked could be do better, and the new fee structure being offered is:
100% Allocation
1% Management Charge
Eur 3 per month policy fee.

Can I please ask for feedback on this? 
Thanks for your time.
Susan


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## Steven Barrett (27 Jan 2015)

I can't find that contract structure. 

You need to get rid of the policy fee, it's 1.2% of your premium. 

Steven
www.bluewaterfp.ie


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## Sleahy (27 Jan 2015)

Thanks Steven,

Would I be better off with the 98% allocation and losing the policy fee? He said that nothing can be done with the fee.

Maybe I should go elsewhere, do you offer what I am looking for and could you pm me on charges?

Thanks,
Susan


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## Steven Barrett (28 Jan 2015)

I don't understand that. Zurich Life have contracts with 100% allocation and a 1% annual management fee. There is a broker commission on that contract. 

If you want me to look at things for you, call me on 086 020 6087 tomorrow. 

Regards

Steven


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## GSheehy (29 Jan 2015)

Sleahy said:


> Thanks for your advise. Where would I go about organising an execution only pension and would this be ok for someone who has little knowledge of the markets?



You can contact a broker and ask if they will set up an execution only executive pension for you. They will charge you a fee for doing. A Bank or Direct Sales cannot do this for you. Well, at least I've never heard of them doing 'execution only' for a fee.  Just tell them what you want and what company you want it with  ie 100% Allocation & 1% AMC with XYZ Company. That's the whole idea of the execution only method of purchase, you decide on the Company, the Product and the Funds.

If you want to buy a Zurich Life pension product on a full execution basis only (no advice whatsoever), you can do so [broken link removed]  (Disclosure - this is my website)

If you don't have the confidence to select a fund (or funds) or aren't happy with the default investment strategies available under the contact (eg PensionStar with Zurich Life), you can pay separately for this advice. There's also a 'Risk Profiler' tool available on this page which may help you.  


I've a feeling that the contract you are being offered directly by Zurich might be the 'Flexible Retirement Plan' - This has a policy fee (but it's €3.50pm according to my manual) and it also has a Bid/Offer spread of 5%.


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