Contribution charge

B

Bettyk

Registered User
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Hi, I have an exec pension at the moment with a bank and am paying 5% contribution charge and approx 1.3% fund management charge. Would anyone have any advice as to what standard charges should be?
I am debating moving pension provider due to the low performance anyway but unsure as to what charges to expect.
Thanks
 
You are paying too much. Set your pension up on a fee basis, have 100% of your money invested and 1% annual management fee.

The low returns could also be related to the fund you are invested in. What is the fund name?


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Bettyk said:
am paying 5% contribution charge and approx 1.3% fund management charge
Click to expand...

The former is a disgrace and the latter is about 30% too high.

As Steven has intimated, you should pay no more than 1% AMC.

Contribution charges should be outlawed.
 
Thanks @SBarrett and @Gordon Gekko ..

Tbh,When I set it up I was too busy to pay too much attention, we just set up a small exec pension to get started. Its now at the end of year 2 and only Oct gone I found out he had us in quite a low risk fund (I obviously signed the paper but would generally come in at 4/5 on a 1-7 risk profiler so am unsure why low risk was chosen as I would have thought medium at least maybe even slightly higher on a pension. Thats changed now and the fund AMC went from 1% to 1.3%.
The fund now is iEquities, I have the documentation in the office for particular one.

@SBarrett on a fee basis, is it a set fee regardless of how much is put in or how is it calculated? I want to up contributions this year but wanted to make sure I wasnt being robbed before I do! Obviously I am so need to look at options before I up the contributions.
 
It is important to pay attention to where your money is going. You will potentially invests tens of thousands of euro into a pension so it is important to have some idea where it is going. Advisors don't help at times droning on about stuff that's really boring and sounds like double Dutch to most.

A fee basis may be calculated a flat fee or a percentage of the premium. Under this scenario, would you have 100% of your money invested. Over the life of a pension, 5% off every contribution can work out to be costly.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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