All other things being equal, the fund she has in mind looks competitive.Apart from the fund also check that the charges are competitive.
All other things being equal, the fund she has in mind looks competitive.
https://www.zurichlife.ie/DocArchiv...15501.232469495.1651233393-3489990.1648825174
"If the costs shown are added to the annual management charge stated on your policy certificate, the resulting figure is comparable to a Total Expense Rates (TER) or to an Ongoing Charges figure (OCF) used by UCITs on their KIIDs..."
The TER, based on what I can tell, will be 0.60% AMC + 0.01% for the BlackRock fund. Being a company scheme, she doesn't have much say, so her goal is to pick the best/lowest fee fund.You should be looking at a TER of under 0.5% and no other product or fund charges, 100% allocation, no bid/offer spread etc.
The TER, based on what I can tell, will be 0.60% AMC + 0.01% for the BlackRock fund. Being a company scheme, she doesn't have much say, so her goal is to pick the best/lowest fee fund.
Completely agree, and it's helpful to have 0.5% as a benchmark, which I presume you've managed to get yourself.Just to clarify, I am not a pension expert or qualified financial adviser. I just have an interest from looking after my own and my wife's pensions.
You are correct, that when you are in a company scheme you don't have a lot of say however is good to know what kind of charges (if any) are being applied, as even small charges can eat into returns over the long term.
My wife is starting a company pension scheme in the coming month or two. No say in the provider (decided upon by the company itself). What are reasonable:
Allocation percentages? I see people recommending to look for 100% allocation, but is 95% allocation god awful or what?
Annual charges? Is 2% excessive? Should it be around the 0.5%?
She has a meeting with the pension provider next week so just drawing up a list of questions for her to ask before deciding how aggressive to go at the pension contributions in the next few years. Thanks!
Completely agree, and it's helpful to have 0.5% as a benchmark, which I presume you've managed to get yourself.
For comparison, my wife is coming from a PRSA with a 5% contribution charge, a 1% AMC, and a fund with a 0.10% on-going charge on top, so the new pension scheme is infinitely better from that basis.
She's going to go with the BlackRock index fund. I can't see there's a better option in the list linked above.
Ask them for the TER, you may have to badger them for it though.My wife is starting a company pension scheme in the coming month or two. No say in the provider (decided upon by the company itself). What are reasonable:
Allocation percentages? I see people recommending to look for 100% allocation, but is 95% allocation god awful or what?
Annual charges? Is 2% excessive? Should it be around the 0.5%?
She has a meeting with the pension provider next week so just drawing up a list of questions for her to ask before deciding how aggressive to go at the pension contributions in the next few years. Thanks!
Are you saying, maximise "free" contributions from your employer in their scheme, then put everything else in your own private pension (providing its charges are lower)?I think the main question is what if anything is the company contribution and what do you need to do to ensure they max that out. There's a lot of variations in rules for matching, and to what level they'll match.
If say they match to 10% (though 5-6% is more typical) then you should really try to get 10% in there to take full advantage....
If the allocation is 95%, it means the employees are paying for the scheme through commission payments to the broker and not the employer, like they should be. All schemes should be paid by the employer and have 100% allocation.My wife is starting a company pension scheme in the coming month or two. No say in the provider (decided upon by the company itself). What are reasonable:
Allocation percentages? I see people recommending to look for 100% allocation, but is 95% allocation god awful or what?
Annual charges? Is 2% excessive? Should it be around the 0.5%?
She has a meeting with the pension provider next week so just drawing up a list of questions for her to ask before deciding how aggressive to go at the pension contributions in the next few years. Thanks!
Annual charges? Is 2% excessive?
I was trying to say to at least make sure the employer is paying in as much as possible, but if you can contribute more than that to the company pension then go ahead.Are you saying, maximise "free" contributions from your employer in their scheme, then put everything else in your own private pension (providing its charges are lower)?
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