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.