Pension Buyout Bond

Hi There,

I met with a financial advisor to plan for retirement (in 7 years when I'll be 65) and I'm not sure I'm doing the right thing so just wanted to ask a quick question. I had a number of small pensions with different jobs over the years (total is €135k) and I've brought them together to tidy things up. So I want to take 25% at 60 but continue on working leaving the balance invested. I also contribute to another pension which I'm not touching for the moment and plan to keep paying into this. So the broker has give me a document for what will happen with the smaller pensions and to be honest I'm not sure its the best I could do, funds will be invested in a German property fund but the projected costs and commissions look higher than the returns so I will end up with less than my initial investment. I don't want to take any risks but I thought I could do even a bit better than a negative return, should I just use the Post Office and I'll at least get back the same or even a state bond? I think I'm being directed towards a product that pays commission to broker. Is there another solution that will let me take 25% and the rest invested? TIA

We have seen several of these this year.

Unregulated or unsuitable geared, illiquid product inside a regulated pension.

The Life Assurance companies should be banned from facilitating this mis-selling but until they do it’s going to keep coming up because the commissions are available.

Should be illegal but sadly it’s not.

You will need to take some investment risk, it’s a pension not your health and ironically “no risk” options like cash are guaranteed to lose you money.

You will need to take sufficient investment risk to beat the annuity rate available otherwise you should simply purchase an annuity with the balance.

Marc said:

Unregulated product inside a regulated pension.

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I'd say you're wrong about that. One very popular German property fund is regulated. But you're missing the point of what the original poster is asking.

@JohnRoberts - I'm going to guess from your post that you're being recommended an Aviva Buy-Out Bond. Before signing anything, I think you should go back to your broker and ask for the following information: -

• What commission is the broker being paid by Aviva? Up-front and ongoing?
• What commission is the broker being paid by the fund?
• What are the charges on the Aviva product?
• What are the charges on the fund?

Post the replies back here and you'll get a better indication of whether they're good, bad or indifferent.

Hi JohnRoberts,

Sadly that “financial advisor” is nothing of the sort.

He appears to be just another scoundrel in an industry full of them. The “investment” is probably “Greenman”. Run a mile.

Speak with someone like Steven Barrett of this parish. Or one of the other decent contributors to this site.

Honestly, some of the pond-scum in financial services would blow one’s mind...incredible

Best of luck,

Gordon

JohnRoberts said:

I had a number of small pensions with different jobs over the years (total is €135k) and I've brought them together to tidy things up.

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You can't bring deferred pensions from different jobs (employers) together and put them in a singular PRB or BoB.

You've two years to go to 60, why are you trying to consolidate them when you're going to mature them anyway?

What fund/s is your other pension (the one you're not touching) invested in?

Gerard

www.prsa.ie