Is my pension a rip-off - private sector worker

T

Toshsmith

Registered User
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Hi

Looking from some general help on my pension. My employer contributes 5% annual and i match that - so approx. €9,000 per year going intro my pension. This pension is active for 4 years.

Below are the charges - do the look OK or am i been ripped off?

· 100% of each contribution is used to secure units in the fund(s) chosen.

· There is no entry charge aside from the monthly policy fee.

· Fund management charge: the value of the fund is reduced by 0.75% per annum.

· A monthly policy fee of €4.44 per month also applies.

Also

Im in the processes of changing jobs - The above contributions will remain. The new employer is not set up in Ireland yet - and has suggested they will contribute to a pension of my choice?

Any advice here?

Any help appreciated
 
0.75% management fee looks ok. So that is not a rip off anyways and 100% contribution is fine.

Not sure what the monthly policy fee of €4.44 is for though.
 
I've seen far worse.

0.75% AMC is okay.

4.44 pm *12 = 53.28 pa, that's approx 1% of your 4,500 pa contribution.
 
Thanks for they replays

The new employer is not set up in Ireland yet - and has suggested they will contribute to a pension of my choice - Any suggestions here?
 
The charges you are paying here are good in terms of your allocation rate being 100%.

Can't really say much about the annual management charge at 0.75% because that's subjective.

If your new employer isn't too bothered about the set up then you should look to set up an executive pension.

There are many reasons for this but the two main ones would be;

1) Greater investment options (typically)

2) You get two retirement options instead of just one i.e. the 25% option or the salary and service option.

So, if the choice is between a PRSA or executive pension, then it's the executive option all the way!


Kevin
www.thepensionstore.ie
 
Toshsmith,

There's no entry charge, but is there an exit charge?

Might be important if you want to move existing pension arrangement.
 
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