Executive Pension Advice

[Rosser]

Hello,
I’m a company director/owner and I’m looking to start a pension.
I’ve been advised to set up an executive pension plan with Zurich Prisma 5. The advisors fee are as follows:
AMC: 1%
FBC: .25%

Any advice would be greatly appreciated. Zurich seem to have a good track record?
Do these fee seem high? Could I negotiate with the advisor to reduce them?
I would be grateful for any feedback.

 

[ClubMan]

I’ve been advised to set up an executive pension plan with Zurich Prisma 5.

By whom?
Tied agent?
Independent financial advisor?
Other?

The advisors fee are as follows:
AMC: 1%
FBC: .25%

FBC = Fund Based Commission I presume?
So is that a total annual charge of 1.25%?
Or is the FBC charged per contribution rather than p.a. on the value of the fund?
Not excessive but not the cheapest as far as I know.
Are cheaper annual charges available on index tracker funds compared to actively managed funds?
Any other charges?
Bid-offer spread?
Less than 100% allocation on contributions?
Any penalties for early years transfer?

Any advice would be greatly appreciated. Zurich seem to have a good track record?

Zurich are obviously a very large and reputable company.
But you need to think about what fund(s) is (are) suitable for your needs.
In my opinion, if you're not on the verge of retirement - and arguably even if you are, due to longevity and likely rolling over of a large chunk of the pension into an ARF ongoing investment - a high/all equities fund/index tracker is often the most appropriate in many cases.

Do these fee seem high? Could I negotiate with the advisor to reduce them?

You can always ask.

I'm not a pensions professional so those who are around here might be able to pose other pertinent questions and offer more nuanced suggestions.

 

[sunnyside]

Hi

I’ve a bit of experience this and have been trying to solve it for a lot of years. I’ve had a few different options over the years.

My two cents. And I can’t stress this enough.
It’s about the people. Choose your advisor carefully and step back.

There’s nothing worse than being a bit stressed because you aren’t sure the deal is right / the fees are too high / the investment strategy is t correct etc.

Im sure you are similar - I have expertise in what I and my company do. So I focus on that and let my advisors focus on my pensions / investments etc.

And finally. I’ve saved a small bit on charges before and lost heavily in the longer run.

To me - it’s about the outcomes. And everyone is allowed to make a living. If they are advising you properly and you are making money , who cares if they are getting a few quid too.

Best of luck.

 

[LDFerguson]

I think it would be useful if you were able to post the answers to the following questions: -

• How much in Euro is the advisor getting paid for setting up the plan for you?
• Are you happy with why the particular product, company and fund are being recommended to you? Were you shown alternative possibilities?
• If the adviser is being paid an ongoing or trail commission, what are they proposing to do for it? How much is it in euros?

It's difficult to get a meaningful answer to the question of whether or not an advisor charge is reasonable without knowing how much work has gone into it. Here on Askaboutmoney.com, execution-only services are popular - you get no advice, do all the research yourself and just want the broker to execute your instructions. Or maybe you're in receipt of advice - advice on how a pension contribution fits into your overall financial position, what pension product is most suitable for you - Master Trust, PRSA or Personal Pension - and why, which provider to choose and why, what level of contribution, which fund is suitable for your circumstances and risk profile etc. etc. Advice involves more work than execution-only and so if you're paying by way of commission, this would usually be reflected in higher charges.