Navin Johnson
Registered User
- Messages
- 12
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.
Zurich as well if I remember correctly https://www.askaboutmoney.com/threads/the-cheapest-prsa.6253/post-1468238Am 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?
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.
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.
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.
It's a shame no one is offering something similar.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.
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