How to set up a separate AVC PRSA Pension Scheme apart from the CIE Pension Scheme, in a scenario where the employer does not provide a salary deducti

I am 43 years old and an employee of CIE. I am a beneficiary of the CIE Pension Scheme for my regular wages. I currently earn around €57,000 gross per year.

I am seriously considering allocating 15-21% (up to €12,000 annually) of my salary towards an AVC PRSA Pension plan. I understand that the total contribution will be subject to 40% tax relief. I am currently familiarizing myself with the new regulations set to take effect under the 2025 budget and trying to understand how they will impact my plans (re "No tax relief for workers’ contributions in auto-enrolment pension scheme”).

I am currently considering three companies, one of which is LABROKERS.IE and their AVC PRSI Zurich pension plan. My intention is to contribute to this plan until I am 68 years old.

What I need right now is a low-cost method that allows me to make pension contributions, take advantage of tax credits, and build up a fund without investing in bonds, property, equities, or alternative options, as I will not accept these myself. Given the current geopolitical situation, it's important to me that my funds are invested with the lowest possible risk for the first five years. At the moment, I have a very low risk appetite.

I would like to get answers to several questions:

A) What is the most cost-effective way to establish a standalone AVC PRSA, given that my payroll has confirmed they do not have a salary deduction facility for Zurich? Which broker/company?

B) What would be the best offer on the market regarding the lowest annual management fee? (I should note that I already have offers of 0.75% with a 100% allocation rate.)

D) Are there Self-Managed AVC PRSA Pension Plans that offer both passive and active funds?

G) Is there any fund product tied exclusively to the price of gold for investment?

H) Could anyone provide more information about Early Surrender Penalties and other hidden fees and costs? Can the AVC PRSA Pension be stopped at any time? I would like specific answers regarding fees.

I) I intend to contribute €5,000-€7,000 before October 31, 2024. My understanding is that if this is done before October 31, 2024, I would be able to claim tax relief for the previous year, 2023—can you confirm this?

J) Is there an option to transfer a PRSA to a pension vehicle in another EU country in the future? Can you confirm this?

K) Is there an option to transfer from a Self-Directed AVC PRSI Pension Plan to a different product in the future?

I am not interested in any additional products when joining the AVC PRSA scheme, such as life assurance, serious illness cover, income protection, or health insurance.

I have a relative in CIE. They were told the AVC provider is Irish Life and duly set up with them a couple of years ago.

You can pay into it before 31st October and claim for 2023 but you'd want to get going quick. Whatever is your personal contribution to the 1951 scheme (if that's your one) , i think it needs to be subtracted from your contribution limits e g 25% minus percentage contribution to 1951 scheme if you are between 40 and 50

Fibbernacci said:

You can pay into it before 31st October and claim for 2023

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November 14th:
Both the contribution and the claim need to be in by this date.

Fibbernacci said:

but you'd want to get going quick.

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Agreed.

A) Opt for an execution only deal. This means that you will have to choose your own funds and risk levels.Judging by your post, you will be well able to do this.
LD Ferguson, PRSA.ie and LA Brokers offer execution only. Contact each of these and ask what rates they can offer.

H) You can stop ,suspend or change the amount and choice of funds anytime.
Usually there will be no fees for this..

jubatus207 said:

trying to understand how they will impact my plans (re "No tax relief for workers’ contributions in auto-enrolment pension scheme”).

build up a fund without investing in bonds, property, equities, or alternative options, as I will not accept these myself.

G) Is there any fund product tied exclusively to the price of gold for investment?

H) Could anyone provide more information about Early Surrender Penalties and other hidden fees and costs? Can the AVC PRSA Pension be stopped at any time? I would like specific answers regarding fees.

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There's no impact to PRSAs on the decision not to grant tax relief to auto enrolment pensions

Sounds difficult to invest when you don't want to invest in anything other than cash. Perhaps you should speak with an advisor.

It is possible to invest in gold ETFs through a PRSA, though it would be a terrible idea for someone who has a low risk threshold (I'd also argue it's a bad idea for anyone...).

There are no early surrender penalties on any PRSA.

jubatus207 said:

and build up a fund without investing in bonds, property, equities, or alternative options, as I will not accept these myself. Given the current geopolitical situation, it's important to me that my funds are invested with the lowest possible risk for the first five years.

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It's obviously your decision to make but this is a very short sighted approach and one that is almost certainly going to result in you missing out on potentially significant returns over the medium/long term. Timing the market is a mug's game.

ClubMan said:

It's obviously your decision to make but this is a very short sighted approach and one that is almost certainly going to result in you missing out on potentially significant returns over the medium/long term. Timing the market is a mug's game.

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I understand that a whole bunch of high-ego financiers constantly try to create a narrative and false myth in every situation, claiming that only they are not missing out on significant returns over the medium/long term. The real facts are different. My investments over the past 15 years have had a much higher rate of return than 90-98% of these so-called professionals.

jubatus207 said:

My investments over the past 15 years have had a much higher rate of return than 90-98% of these so-called professionals.

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That's why many people suggest passively managed equity index trackers rather than actively managed funds. E.g.:

https://www.nasdaq.com/articles/heres-the-average-stock-market-return-over-the-last-15-years

Overall, the S&P 500 grew at a compound annual growth rate of 13.8% over the last 15 years.

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jubatus207 said:

I understand that a whole bunch of high-ego financiers constantly try to create a narrative and false myth in every situation, claiming that only they are not missing out on significant returns over the medium/long term. The real facts are different. My investments over the past 15 years have had a much higher rate of return than 90-98% of these so-called professionals.

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What have you been investing in? Your posts suggest you only want to invest in cash.

ClubMan said:

https://www.nasdaq.com/articles/heres-the-average-stock-market-return-over-the-last-15-years

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Overall, the S&P 500 grew at a compound annual growth rate of 13.8% over the last 15 years.

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Do these puff pieces for benchmark indices ever mention charges? I presume that 13.8% is before any platform charges or other ongoing fund costs?

Very difficult for a punter to do any sort of comparison, if they don't.