Irish Life Charges - Alternatives

G

GetMoving

Registered User
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Hi,

I'm currently contributing €1,000 per month to an Irish Life PRSA (concensus fund) through my employer. My employer is not making a contribution. The allocation rate is 95% and the management charge is 1%.

In view of these standard, but high, charges, I would like to find out about changing to a self-administered fund. Will I still be able to get the 42% tax relief if I don't go through my employer's official PRSA scheme? Are Eagle Star the only company doing the self-administered funds? Are there any other catches if I switch from the Irish Life PRSA to a similar type consensus fund with the likes of Eagle Star?

Tnx,

G
 
I think you may be getting your terminology confused. Self administered means you choose your own investments within your pension fund rather than Irish Life or Eagle Star doing so. The term self-administered doesn't describe a charging structure.

If you are happy to stay with a Consensus Fund, you could arrange for a Discount Broker to set up a Personal Pension for you with lower charges than your current PRSA but investing in the same Irish Life Consensus Fund. This assumes you are eligible to contribute to a Personal Pension (in non-pensionable employment or self-employed).

If you go down this road, you will pay the grodd contribution by Direct Debit, then claim back your tax and Employee PRSI relief. The tax relief would usually be granted as an increase to your tax credits. The PRSI relief can be claimed at the end of each tax year.

Liam D. Ferguson
www.ferga.com
 
Plus I don't believe there are any Self Directed PRSAs in the market. Could be wrong, but I couldn't see the Pensions Board allowing it?
 
boaber said:
Plus I don't believe there are any Self Directed PRSAs in the market. Could be wrong, but I couldn't see the Pensions Board allowing it?
Click to expand...

[broken link removed] are probably the lowest-profile of the approved PRSA providers. I think (but I could be wrong) that their PRSA has some element of self-direction. It's a Non-Standard PRSA.
 
OK, thanks for comments.

What does "not in an occupational pension scheme" mean? Is this when my employer doesn't make a contribution? or does the fact that they are providing a PRSA, but without making a contribution, mean that I do actually have an occupational pension scheme provided, and wouldn't qualify for a personal pension?

Reading what you are saying, it would seems to make more sense to go for a discount broker/personal pension, given the potential 5% saving...
 
GetMoving said:
What does "not in an occupational pension scheme" mean? Is this when my employer doesn't make a contribution? or does the fact that they are providing a PRSA, but without making a contribution, mean that I do actually have an occupational pension scheme provided, and wouldn't qualify for a personal pension?
Click to expand...

No if your employer only offers access to the PRSA, you are eligible to have a Personal Pension as an alternative. An Occupational Pension Scheme is another type of pension scheme for employees.
 
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