Executive Pension plan best buy?

Hi,

Appoligies if that was answered before, a search did not yeild any recent results.

I'm about to set up a EPP to put pension money into deposit accounts so lowest fees / highest allocation.
Any one can advise on fees (I've looked at Friends first /Irish life and I'm sure that I can get a better deal?

TIA

Are you looking at the self directed option or are you happy to go with the deposit accounts that are offered by a life company? Have you looked at self admin schemes? How much are you contributing?

You do know that management fees have a bearing on the allocation rate you get? Lower fees, lower allocation. Higher allocation, higher fees i.e. they recoup the allocation rate by charging you more.


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

Hi Steven,

Thanks for your reply.

I've looked at self directed, but my plan is to initially use a life company deposit account (I know about the current low intrest rates) and once i build up a sum of over 20,000k I'll move into SIF.

I'll probably put in excess of 2000k p/m into it.
Thanks

You'll need to avoid early exit penalties then (an increasing difficult thing to do these days!).

Standard Life have a contract with 100% allocation, 0.75% AMC, no early exits.

I have a deal with New Ireland, 100% allocation, 0.5% AMC, €4.25 monthly policy fee, no early exits

If you are looking for a self admin, it'll cost €1,000 to set up and 0.25% AMC with a minimum fee of €900.

Seeing as it will only take you 10 months to get to €20k, why wouldn't you go with the self admin from the outset? Save you the hassle of having to set up 2 plans in such a short period of time.


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

Thanks Steven.
you helped me a lot.

As a side note, what is the maximum amount that the employer can contribute annually to an Executive Pension plan?

I have found information on the maximum annual contributions allowable by the employee, however have had no luck finding any details on the maximum annual contribution from the employer...

An employer can contribute what is required to fund a pension of up to 2/3 final salary. The Revenue have formulas for calculating what those figures are based on age and your current retained benefits.

Look up chapter 5 of the revenue pensions manual [broken link removed]


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

SBarrett said:

If you are looking for a self admin, it'll cost €1,000 to set up and 0.25% AMC with a minimum fee of €900.

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

Click to expand...

This sounds like a good option. Would you have any more information?

With a Self-Admin pension, is there a trustee fee payable in addition to the AMC?

Also, what are the main differences between a Self-Admin and Self-Directed pension?

Hi Jimmeboy

The 0.25% is the trustee fee that is payable. You then have to pay your fund manager etc.

Self admin used to be the term used for a company paid pension that you had control over the investment. Self directed was the term used for personal paid pensions. Where the money went and how it was invested was always the same.


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