pension query

[angieh]

Hi

Just looking for some advise, my husband (in his mid 30's) has a private pension since 2000. He has paid in 9500 euro and it is now worth a little over 10k. Three children later and after building a new house we are now in a position to increase the monthly payments into this pension.

We had a broker call to give us some quotes and he recommends taking out a new personal pension - obviously this is to his advantage -I personally would think it would make more sense just to increase the monthly contributions to this pension. The broker recommended Friends First.

Just wondering if anyone out there has any advise.

Maybe we need to move the current pension to a different fund, current pension with BOI

Thanks

AH

 

[ClubMan]

pension query

 

[ClubMan]

Just looking for some advise, my husband (in his mid 30's) has a private pension since 2000. He has paid in 9500 euro and it is now worth a little over 10k.

What past and ongoing per contribution and annual management charges apply? What is it invested in? These factors could have a significant impact on performance. How did he select this product? Who advised him?

We had a broker call

What sort of broker? Tied agent, multi-agency intermediary, authorised avisor?

to give us some quotes and he recommends taking out a new personal pension

What reasons did he give for this being to your best advantage?

- obviously this is to his advantage -I personally would think it would make more sense just to increase the monthly contributions to this pension. The broker recommended Friends First.

Why? And what terms & conditions (in particular charges) apply?

Just wondering if anyone out there has any advise.

Make sure you get independent, professional advice.

Maybe we need to move the current pension to a different fund, current pension with BOI

You can choose different funds even with the same provider in most cases.

What about a low charges PRSA? There are lots of threads on these - for example:

The cheapest PRSA?

 

[angieh]

Hi Clubman

I will have to look into all the background information in relation to this pension and will advise you.

I thought by going to a broker that I would get independent advise - but all he advised us on was the Friends First Pension!

 

[angieh]

Sorry also meant to ask - can we stop paying into the BOI pension and just leave it there sitting or is there penalities?

 

[ClubMan]

Sorry also meant to ask - can we stop paying into the BOI pension and just leave it there sitting or is there penalities?

No idea - you'd need to post details of the terms & conditions of the policy here.

 

[F. Kruger]

Hi AH,

Sometimes it is easier to understand the products with an example :

A male aged 35 next birthday paying €2,000 per annum (level) to a Personal Pension to age 65.

If the product has a 5% Contribution charge and an Annual Management Charge of 1.5%, then the estimated fund @ 6% growth is €126,302

If the product has just a 1% Annual Management Charge, only, then the fund is estimated at €145,868.

The potential cost of the 5% and additional 0.5% AMC is almost €20,000 over the term of the plan.