private pension charges

[Protocol]

I have a private pension with Hibernian. As I used a nil-commission broker, I pay 0% commission (was 8%).

I pay an AMC of 0.75%.

But I also pay an annual fixed "plan charge" of IR£150, now €190.

My contribution pm is 150.

What do people think of this charge??? Excessive??

 

[jpd]

Depends, does it
1) come out of your annual premiums before they are invested, thus it similar to a commission charge
if you consider it as a percentage of your annual premiums then it's 190 / (12 * 150) = 10.5% -

If you calculate as a percentage of your investment/plan value then it's
190 / value = whatever%

The AMC is then not really 0.75% (which I would consider correct, if a bit on high side) but AMC + whatever%

 

[jpd]

Depends, does it
1) come out of your annual premiums before they are invested, thus it similar to a commission charge of 190 / (12 * 150) = 10.5% - very high !

or
2) is it deducted from your plan value and thus is like an additional AMC. So your AMC is not 0.75% but 0.75% + 190 / value *100 %

An AMC of 0.75% (which I would consider correct, if a bit on high side) but AMC + whatever% may be way too high !

Joe

 

[jpd]

Depends, does it
1) come out of your annual premiums before they are invested, thus it similar to a commission charge of
if you consider it as a percentage of your annual premiums then it's 190 / (12 * 150) = 10.5% -

If you calculate as a percentage of your investment/plan value then it's
190 / value = whatever%

The AMC is then not really 0.75% (which I would consider correct, if a bit on high side) but AMC + whatever%