# 32% of my pension lost?



## Miky24 (1 Dec 2008)

Hi all,

I am looking for an advice of professional or someone experienced, who knows how PRSA works and how to deal with pension companies / consultants.

Here is my story.
I am with Irish Life for 16 month. I asked my consultant to choose lowest risk investment for my plan, which is PRSA Standard Plan. Every few months I received balance of what I and my employer contributed into my pension. I was happy until today, when I opened letter from Irish Life, which showed that my current balance had been significantly decreased. Until June 2008 I was paying in PRSA and my fund was growing, starting from June 2008 till now I am still paying the same amount but I am constantly loosing 1.2% a week(!) from total amount! I checked my plan online - no mistake, my consultant invested in some Consensus Plan Series S which had loses on 32% over year 2008.

The worse part is that starting from this month my employer doesn't match my contribution in PRSA. This means that I will pay in pension less then I will be loosing! Here is a rough example of proportion: if I would pay €75 a month, my fund would be deducted on €100 a month.

My question is - how is it possible? Do I understand everything correctly? And if yes, then who is taking my money and why? And what should I do about whole thing?..

I will appreciate your advice.
Miky24


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## ClubMan (2 Dec 2008)

What specific funds/assets is your money invested in? What charges apply (to each contribution and on an annnual basis?)? For a standard _PRSA _the maximum charges possible are 5% of each contribution and 1% annual management charge. Apart from charges your (paper) losses are most likely due to market volatility in recent months. Unless you are very near retirement you should not let such short term volatility worry you unduly as a pension is a very long term investment.


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## Don_08 (2 Dec 2008)

What age are you?

Also, did you specify low risk to the advisor, and how was low risk defined?  Have you something in writing to that effect?

Low risk would say to me bonds or cash, not the consensus fund.  But if you are young, and have lots of time before retirement then bonds or cash would not be seen to be appropriate.

Remember as clubman says, pensions are a long term investment, and you shoudl not be put off by short term fluctuations.


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## PaddyW (2 Dec 2008)

Do a search for LD Ferguson and try find his post re pensions and stock market performance long term. If you are still young it will ease your mind a great deal. It did mine.


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## riddles (2 Dec 2008)

I had an issue with investing with Irish Life - I specified to my employer to add my contributions to the low risk option - this is essentially the fixed interest fund - when I questioned this my documentation stacked up and I was refunded the amount.  The fixed interest fund is the true low risk fund from Irish Life?


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## ClubMan (3 Dec 2008)

riddles said:


> I had an issue with investing with Irish Life - I specified to my employer to add my contributions to the low risk option - this is essentially the fixed interest fund - when I questioned this my documentation stacked up and I was refunded the amount.  The fixed interest fund is the true low risk fund from Irish Life?


I can't understand your question. Maybe you can clarify?


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