Yes this does seem high. Zurich have some low cost annual management charge (amc) options which, if you meet their condtions, charge an AMC of 0.6% or 0.8% per annum. Some of their other standard pension contracts have AMCs of 0.75% or 1%.
You should also check what net allocation rate you are receiving on your contributions to make sure you are getting value here too. Sometimes there can be an AMC versus allocation rate trade off, in this event, your broker should be able to provide different projections for the various choices allowing you to decide what is the best option for you.
If your broker is charging you trail commission ( added to AMC every year) then under the Consumer Protection Code your broker is obliged to disclose the nature of the service they will provide in return for this ongoing charge.
I hope this helps.
Thanks. Very help full.
broker has a once off charge off 300 euro.
after that its Zurich charge of 1.5%
Thanks Folks.
Following my latest negotiations with broker the "Zurich" rate has miraculously dropped to 1%.
I have to agree with Dave re his comments about the need for clear disclosure on the charges/fees. All pensions except Executive pensions are required to disclose all broker remuneration in full so check your illustrations/projections as provided by your broker. Transparent disclosure allows you to have a 'reasonableness' check on what your broker is earning. Remember to check the 'net allocation rate' you will recieve on your contributions before you sign up.
Regards Vincent
This is a directors pension (as in I am a director of my own company).... so not sure if this is relevant?
Anyway, I'll check my net allocation rate before signing.
Cheers