Probably the best (cheapest) PRSA in the world?

I would expect to be able to get better pricing on an ARF, as PRSAs have to pay 0.05% of their value to the Pensions Authority each year

There was a time when that was a certainty but something has changed in the past while with some providers. I'm not sure whether it's by design or error but I'd be leaning towards the latter. Good for the consumer and competition though.

There are anomalies in some of the Royal London & Standard Life product offerings. I'm not an actuary but the following wouldn't really 'add up' for me. Maybe the smaller players are leaner and have less operating unit costs? My own small buiness experience is that costs are on the up-and-up.

The base AMC (no distribution margin) for one SLAC PRSA (with a low ish minimum threshold?) is 0.40% and we know they have to pay 0.05% to Pensions Authority out of that. That base AMC is lower than what the provider offers on (say) an life assurance investment, to the best of my knowledge, with no PA fee to pay. I did pose the anomaly to the company once, but didn't get a reply.

The base AMC for Non-Standard PRSA and ARF with RL are the same @ 0.40% so I'm sure they'd prefer that you bought an ARF, post retirement , than a Vested PRSA as the ARF has more margin in it by the saving, to them, on the 0.05%. Plus, it's highly likely to be on a reducing balance basis.

The base AMC on a PRSA with the three biggest pension players is 0.50% and their other product offerings would typically have a lower base AMC.



Gerard

www.prsa.ie
 
So would the royal London prsa be cheaper for a public sector worker contributing about 6k per annum (open to either lump sum or monthly) vs the rest of the market, even execution only brokers via Zurich?
 
So would the royal London prsa be cheaper for a public sector worker contributing about 6k per annum (open to either lump sum or monthly) vs the rest of the market, even execution only brokers via Zurich?
Possibly, but you'd need to compare the charges on each to be sure. The discretionary Royal London Ireland ValueShare bonus should also be factored on even if it's not guaranteed or the amount known in advance (0.13% so far for 2023 and 2024).
 
So currently paying 0.75% if minimum SP €5,000 or RP €350pm, and contributing about 6k per annum (could be done as a lump or monthly, doesn't matter). Seems that the RL would be cheaper?
 
What are "SP" and "RP"?
RLI definitely have AMCs less than 0.75%.
But Standard Life also have funds with an AMC of 0.4% (but no ValueShare bonus scheme).
 
What are "SP" and "RP"?
RLI definitely have AMCs less than 0.75%.
But Standard Life also have funds with an AMC of 0.4% (but no ValueShare bonus scheme).

SP - single premium RP regular premium
SL AMC of 0.4% is only for 100k+ transfers I believe so not relevant for those just starting off or looking to build a small AVC
 
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