ongoing costs of self admin pension fund

C

col

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I have a self administered pension fund with a well known brokerage house with an ongoing management charge of .25% of the fund value per quarter. Seems very expensive to me.Is this good value.What are other people paying.
 
If it's self administered then why do you pay any management charge at all!? What services are you getting for the 0.25% per quarter?
 
As far as I am aware you have to route your self administered pension fund through recognised government approved institutions. At least that is what I was told. I have control over where the investment goes-shares ,property, deposits etc. For the .25% I get a quarterly update on the fund value and a yearly review with recommendations.
 
  • You can get a self-admin pension fund that is administered for about €1.5k per year - how this compares with 0.25% of fund per quarter depends on size of your fund.
  • If your fund is greater than €150k - then you would be better off with a fee based consultant
 
  • My firm of course:)
  • Or you might try ITC (may be who you are currently with)
  • Or you might for to Mercer or Hewitt - probably want a fund of at least €1m to get attention there
 
www.wealthoptions.ie - give them a call, and they will put you in touch with someone. Not a brokerage, but distribute products through brokers.

Re Mercer / Hewitt - no harm is asking them, but will be relatively expensive.

If it is simply a question of cost, can you google your requirements and then phone around?
 
Azriel said:
www.wealthoptions.ie - give them a call, and they will put you in touch with someone. Not a brokerage, but distribute products through brokers.
Click to expand...

What is the point in going through one intermediary (such as above) to get to another intermediary - surely you want direct contact with the actuary/administrator/pensioneer trustee - no point having too many people putting their hand in your pension pot.
 
I wasn't suggesting that they would put their hands in anyones pot. I simply noted that they would point you in the right direction.

And for clarification, you do not need an actuary for a Self Administered Pension Scheme either (may help in your reducing the number of hands in pots).
 
  • For clarification you need funding figures calculated by an actuary - so you either need an actuary or an actuarial set of tables, probably best to get an actuary to explain the figures and how they can be best used to pension fund holders advantage
 
Seems to be stretching things a little to think that you need an actuary "to explain the figures". Would an intermediary not be able to fulfill that role (and thereby take advantage of the lower cost "tables" option)?

"For clarification you need funding figures calculated by an actuary" - this is factually incorrect, and as such, not a particularly useful clarification.

Apologies if I am being pedantic, however I was dissappointed by yYour dismissing of my suggestions above (that may lead to business not coming to CapitalCCC?), and use of a partisan tone via phrases like "hand in the pension pot".
 
REVENUE PENSIONS MANUAL, PAR 19.7, I QUOTE:

"As a condition of approval, RBD will expect ACTUARIAL reports to be made at intervals not greater than 3 years..."

In my experience, many intermediaries have proven themselves to be utterly incapable of explaining these figures to clients.

I recommended firms other than that which I work for - Hewitt and Mercer for example.

I have never heard of Wealth Options.
 
From previous discussions with Revenue, they have clarified that the report does not need to be prepared by an actuary. You suggest as much yourself in your reference to actuarial tables.

The actuarial figures you refer to are for maximum funding purposes - they are a simple limit on what can be contributed. What intermediary can't grasp the concept of a Revenue imposed limit on contributions?

Iro the actuarial consultancies, you said "probably want a fund of at least €1m to get attention there". Not quite a wholehearted recommendation.
 
The report does need to be signed by an actuary.

The scheme does not need to appoint an actuary but it needs a triennial actuarial report (the tables I suggest can be used in the interim).

It is a fact that a multinational consultancy will usually prefer to work with higher worth clients.
 
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