Good deal? where the broker keeps the extra allocation rate (5%) as their commission

I was offered a pension plan where the broker keeps the extra allocation rate (5%) as their commission so if I invest 10k then 10k goes to the plan ( less the pensions management fee), that's their best offer. Any views?

Re: Good deal?

What is the annual management fee? Are there any other fees? Is the fund selection suitable to your needs? 100% allocation rates or pensions with no charges other than an annual management fee of c. 1% are not that unusual so there may be other options out there. Who are you getting advice from?

The company is New Ireland via a broker so the management fees are probably the usual 1%.

Mgt Fee might not necessaily be 1% ..you need to check Fund. We would only take 3% not 5%

Who is "we"?

luain said:

I was offered a pension plan where the broker keeps the extra allocation rate (5%) as their commission so if I invest 10k then 10k goes to the plan ( less the pensions management fee), that's their best offer. Any views?

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What type of deal would New Ireland offer you directly (i.e. not through a broker)? Can you negotiate a lower rate of commission (i.e. broker gets 3%, you get 2% extra allocation)? Or is this a standard New Ireland deal with all brokers? To be honest, I haven't seen this type of arrangement before, and I wouldn't like to see my extra allocation going to the broker-isn't it the institution that should be paying their fees?