Funds from previous employer

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bish123

Registered User
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Hi all

I am 45 and have around €230k in pension fund from previous employment. It's with New Ireland Assurance and invested in their Passive IRIS fund 2034 onwards which is mainly invested in equities (70%) and corporate bonds (17%). Until now I was keeping it with them for deferred benefit at retirement. I tried but various fees and cost of maintaining this fund is difficult to understand. I do have another pension fund with new employer and I tend to maximize contribution (with higher tax bracket) since I turned 40. I don't want to transfer previous pension pot into new one as I will loose flexibility of early retirement option if I can't work until 65.

My question is related to reducing cost and/or maximize return of my previous pension fund. If it's not one of the best schemes, should I move these funds to some where else or should I keep it there but change the portfolio to other offerings within New Ireland Assurance.
.
Thanks
 
@bish123

Post the various fees and costs of your older pension and you're more likely to get a reply.

If they're not clear from the documentation you have you should contact the administrator/intermediary to the scheme and get them in writing from them.

Gerard

www.prsa.ie
 
It look some time to find the administrator. He told me 'as far as I am aware there is no maintenance cost of keeping your pension'. I have asked him to send a formal email with AMC if any.

I am bit surprised (positively if true) by the answer. Is it possible to have passive pension funds without any charges?
 
bish123 said:
It look some time to find the administrator. He told me 'as far as I am aware there is no maintenance cost of keeping your pension'. I have asked him to send a formal email with AMC if any.

I am bit surprised (positively if true) by the answer. Is it possible to have passive pension funds without any charges?
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Is it possible your former employer is covering the costs for all scheme members?
 
If the €230k is a “paid up “ policy (no further contributions being invested), then it’s likely the only charge will be the Annual Management Charge. Highly unlikely that the previous employer is covering this charge.
 
Thanks.
It's 'paid up' policy and AMC is 0.5%. I think it's good deal from cost perspective but still not sure if Passive IRIS 2034 is right fund. I am 20 years away from retirement so happy to transfer it to somewhere else if there are better options.
 
But within the existing policy you should have options to switch to other funds. If you have some 20 years to retirement, then a weighting towards Equities is probably the correct strategy. The idea behind the IRIS 2034 is that the fund managers will gradually reduce the Equity weighting (reducing the risk profile) as you get closer to 2034.
 
bish123 said:
Thanks.
It's 'paid up' policy and AMC is 0.5%. I think it's good deal from cost perspective but still not sure if Passive IRIS 2034 is right fund. I am 20 years away from retirement so happy to transfer it to somewhere else if there are better options.
Click to expand...

Note if if you combine previous pension into your current employment pension fund you lose the possibility of starting drawing down the two pensions at different ages...Might not be an issue but if thinking of retiring a bit early could be handy to have option of starting one pension and leaving the other one intact/invested.
 
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