Company Pension Advice

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A99

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Hi, I am looking into (1) moving my current company pension, or (2) options to make changes to my current pension. Current pension details as below ;
Current pension : Irish Life Executive Pension :
% Allocation : 97% (split between 2 funds)
Management fee : 1%
Value : 100k, with 1.5k per month contributions (plan to increase contributions to approx 4k / month & will be contributing for another 15 years)
There are no penalty fee’s for moving so looking for general advice on either negotiating a better structure for my existing pension / or moving the pension to another company. I also have approx. 160k of old funds separate to my current company pension which I could also combine with no exit penalties if I was to move.
Thanks in advance.
 
You should have 100% allocation on an executive pension plan especially if you're contributing at that level but it can be difficult to get this with Irish Life. Did you take this plan out through a bank, broker or direct with Irish Life themselves?

The question on whether to move or not would depend on what you're looking for but it's a good idea to look around and see what's available.

Kevin
www.thepensionstore.ie
 
You are leaving money on the table with an allocation rate of 97%. You should have the money you paid in invested in your pension. Irish Life are old school when it comes to charging structures, keeping the ones that suit advisors who have been feeding at the trough for decades. There are lots of better options available to you.

I wouldn't necessarily move the other money. it can be beneficial to keep them separate as you old employer may pay the charges, you can access it earlier and the full amount will be paid tax free if you died before retirement.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Decide if you will need help from an advisor on the product/s , the product provider or fund selection.

If you don't, then you can do this execution only and will probably be able to reduce your AMC by circa 25% , get 100% allocation and have no exit charges on the product/s (if a lower cost product becomes available you can move it freely) .

You would need to approach a discount broker (or two) and set out your stall eg I have a fund of €100K and contribute €1.5K/€4.5K per month, I want to transfer it to an Executive pension with lower charges with ABC Company and I will choose my own investment funds.

If you do need advice on the product/s, provider or funds - then agree from the outset how that's going to be paid for.

I'd also be doubtful if ILAC will be the ones that 'win' your business, on costs, but you could ask the person that set this up for you initially if they can do any better.

Companies don't like cannibalising their own books of business, via reduced margins, even though they might lose the client. If they do agree, you can use this as a starting point and still research a lower cost option.


Gerard

www.prsa.ie
 
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