Choose pension provider

N

Navin Johnson

Registered User
Messages
12
Hi

I pay into the company pension scheme monthly.

I am an employee and the company contributes too.

However I would like to choose the pension provider, so that I can have the pension go into low cost etf's rather than expensive managed funds?

Thanks
 
Your employer will need to agree to set up a new pension scheme of your choosing. Will they do this for you?

If not, you can remain in their chosen pension scheme and contribute extra amounts (Additional Voluntary Contributions or AVCs) to an AVC PRSA product of your choosing.
 
LDFerguson said:
Your employer will need to agree to set up a new pension scheme of your choosing. Will they do this for you?

If not, you can remain in their chosen pension scheme and contribute extra amounts (Additional Voluntary Contributions or AVCs) to an AVC PRSA product of your choosing.
Click to expand...

Am I right in adding to this thread that davy and standard life are the only Irish prsa avc providers who offer option of accessing S & P 500 for an AMC of 1% or less?
 
Thanks for replys..
So as usual you end up paying large fees..

They even want around 2% entrance fees...

If I understand correctly...I looked here:

https://www.pensionsauthority.ie/en/prsa_providers/prsas/

These are the available standard prsa products available....

Seems I stuck paying fees that I don't want to pay...:-(



Aviva Life & Pensions Ireland Designated Activity Company (Total products available: 26)
Standard PRSA Products - 13 available

Irish Life Assurance Public Limited Company (Total products available: 43)
Irish Life Retail Standard PRSA Products - 13 available


Irish Life Corporate Standard PRSA Products - 13 available

KBC Insurance NV trading as KBC Life and Pensions (Total products available: 1)
Standard PRSA Products – 1 available

New Ireland Assurance Company Public Limited Company also trading as / Bank of Ireland Life (Total products available: 21)
Standard PRSA Products - 7 available

Zurich Life Assurance Limited (Total products available: 20)
Standard PRSA Products - 8 available
 
Just out of curiosity what level of fees are you willing to pay and what services do you expect to receive in return?
It might make it easier to narrow down the search
 
My preference is an index tracker, no brainer to run and therefore lower fees.
As well as easy for me to understand!
Also I'm happy with average performance over higher fees with no guarantee of higher performance.
Also if I'm concerned and quick enough I might switch to cash.
 
Navin Johnson said:
Also if I'm concerned and quick enough I might switch to cash.
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Which is almost guaranteed to lead to poor results.

4704

Far better to simply set it up correctly from the start (e.g. a global equity fund or index tracker) and then just blindly contribute to it over the years.
 
The 2% charge isn't to do with the funds, is to do with the pension contract. The advisor who is setting up the pension for your company is charging 2% from the contribution. He probably get 10% of the first year premium from the insurer. Whether you go with a managed fund or index fund is immaterial.

Your employer is under no obligation to facilitate a switch of providers. They have to offer a PRSA and do it through payroll, which they have done. if you want to use someone else, they can just say go off and do it yourself through your own bank account. They may not contribute to it.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Navin Johnson said:
My preference is an index tracker, no brainer to run and therefore lower fees.
As well as easy for me to understand!
Also I'm happy with average performance over higher fees with no guarantee of higher performance.
Also if I'm concerned and quick enough I might switch to cash.
Click to expand...

Okay an index-tracker is indeed lower cost to run than an actively managed fund. So that deals with your investment choice.

You've said that this is a pension. So there's work involved with collecting money from your salary, passing it over to the pension provider every month, buying into the fund each month etc. There are legal requirements regarding issuance of regular pension statements in a prescribed format. There may well be a third-party trustee overseeing the pension scheme. There may also be a broker available to give you advice on your pension benefits.

While the low cost of an index-tracking fund or ETF may accommodate your investment requirements, what fees would you think are reasonable for the administration of a pension scheme?
 
Everybody deserves to make a living
I guess I'm looking for the most basic service.
No bells or whistles.
Their are plenty of examples of companies that can make money through efficiency and new technology to offer better value.
As to a precise % that I'd pay who knows.
If I could get €20m from investors, put in an off the peg tracker I'm sure I could organise myself for a 1% fee to do this work, with no risk to myself.
 
Navin Johnson said:
Everybody deserves to make a living
I guess I'm looking for the most basic service.
No bells or whistles.
Their are plenty of examples of companies that can make money through efficiency and new technology to offer better value.
As to a precise % that I'd pay who knows.
If I could get €20m from investors, put in an off the peg tracker I'm sure I could organise myself for a 1% fee to do this work, with no risk to myself.
Click to expand...

Remember that Ireland is a very small market. Quinn Life offered fairly low-cost funds for around 11 years from 2000 to 2011. When they were sold to Irish Life in 2012 it's reported that there were 5,000 policies and €100 million in funds. If they were getting 1% per year, then the income for the company would have been €1 million a year. To pay for salaries for enough staff to administer 5,000 policies, an office, paying for the ETFs they were investing in, regulatory compliance, marketing, IT systems, printing and posting 5,000 statements a year etc. etc. And remember that they didn't go to 5,000 customers and €100 million in their first year of trading. It would have built up to that over the 11 years. So in the early years the income would have been far less.
 
Gordon Gekko said:
Which is almost guaranteed to lead to poor results.

View attachment 4704

Far better to simply set it up correctly from the start (e.g. a global equity fund or index tracker) and then just blindly contribute to it over the years.
Click to expand...

The image looks like my invest style alright :)

Blindly contributing is exactly what I'd like to do, I would be doing the same with a managed fund anyway...
 
LDFerguson said:
Remember that Ireland is a very small market. Quinn Life offered fairly low-cost funds for around 11 years from 2000 to 2011. When they were sold to Irish Life in 2012 it's reported that there were 5,000 policies and €100 million in funds. If they were getting 1% per year, then the income for the company would have been €1 million a year. To pay for salaries for enough staff to administer 5,000 policies, an office, paying for the ETFs they were investing in, regulatory compliance, marketing, IT systems, printing and posting 5,000 statements a year etc. etc. And remember that they didn't go to 5,000 customers and €100 million in their first year of trading. It would have built up to that over the 11 years. So in the early years the income would have been far less.
Click to expand...
It's a shame no one is offering something similar.
 
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