Steps to switch from one PRSA provider to another.

Hi all, I've searched but can't find anything in relation to this.

My friend has an Evergreen pension fund with BOI, that seems to have underperformed, to say the least. He would now like to switch this fund to another provider. How would he go about this?

Thanks in advance.

He doesn't necessarily need to change provider. There are plenty of other funds on the New Ireland platform that perform better.

Kevin
www.thepensionstore.ie

Choose the pension provider you want to transfer to. Complete an application. Submit it. New provider sends a Willing & Able Letter to old provider. Client submits signed written instruction to old provider confirming the request for transfer. Old provider transfers money to new provider. New provider applies it to the shell policy set up and issues documentation.

Gerard

www.prsa.ie

PaddyW said:

Hi all, I've searched but can't find anything in relation to this.

My friend has an Evergreen pension fund with BOI, that seems to have underperformed, to say the least. He would now like to switch this fund to another provider. How would he go about this?

Thanks in advance.

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Underperformed compared to what and over what period of time?
What are the charges?
What is the asset mix?
In many or most cases a low charges mostly or all equity passively managed index tracker is a good bet on decent performance over the long term.
Churning to another provider isn't necessarily the best option.

ClubMan said:

Underperformed compared to what and over what period of time?
What are the charges?
What is the asset mix?
In many or most cases a low charges mostly or all equity passively managed index tracker is a good bet on decent performance over the long term.
Churning to another provider isn't necessarily the best option.

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Good questions to be asking, but there is also one more important one - was there no contact from the provider, offering a review ?

A PRSA may be an "off the shelf" product, but I still think every customer is deserving of a periodic review, to ensure their circumstances haven't changed, that the pension investment is performing as expected, is still right for the client's risk attitude etc.

If I wasnt getting that service from my provider (or through my broker, where applicable), I'd definitely be moving my business to a new provider.

MrEarl said:

Good questions to be asking, but there is also one more important one - was there no contact from the provider, offering a review ?

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Could be an execution only arrangement?

MrEarl said:

If I wasnt getting that service from my provider (or through my broker, where applicable), I'd definitely be moving my business to a new provider.

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Some people probably don't want to pay extra for such a service.
And, in some cases, such reviews could just end up with the intermediary encouraging unnecessary or inappropriate churning leading to further losses or opportunity costs.

ClubMan said:

Underperformed compared to what and over what period of time?
What are the charges?
What is the asset mix?
In many or most cases a low charges mostly or all equity passively managed index tracker is a good bet on decent performance over the long term.
Churning to another provider isn't necessarily the best option.

Click to expand...

Hi Clubman, for comparison, my old occupational pension has grown from 93k to 213k in the past 7 years, even though I had stopped contributing to it. He has been contributing to his PRSA and has only seen a 20% growth overall.

Not sure of the asset mix or charges etc as I was only introduced to it at the weekend, but google doesn't bring up much on it.

MrEarl said:

Good questions to be asking, but there is also one more important one - was there no contact from the provider, offering a review ?

A PRSA may be an "off the shelf" product, but I still think every customer is deserving of a periodic review, to ensure their circumstances haven't changed, that the pension investment is performing as expected, is still right for the client's risk attitude etc.

If I wasnt getting that service from my provider (or through my broker, where applicable), I'd definitely be moving my business to a new provider.

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My friend would have very little knowledge of pensions. He only started this one as he had banked with Bank of Ireland his whole life and they offered him this one.

PaddyW said:

Hi Clubman, for comparison, my old occupational pension has grown from 93k to 213k in the past 7 years, even though I had stopped contributing to it. He has been contributing to his PRSA and has only seen a 20% growth overall.

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Without further information this could be an apples and oranges comparison.

PaddyW said:

Not sure of the asset mix or charges etc as I was only introduced to it at the weekend, but google doesn't bring up much on it.

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He should look at and clarify those details first - and definitely before rushing off to switch providers.

OK, got some more info. Asset mix is equities, bonds, cash and properties. A fairly poor mix overall. He is 46 so should really be more heavily invested in equities.

PaddyW said:

OK, got some more info. Asset mix is equities, bonds, cash and properties. A fairly poor mix overall. He is 46 so should really be more heavily invested in equities.

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I would agree.
And what are the charges?

I can't seem to find any charges on the information page or PDF they have with it

PaddyW said:

I can't seem to find any charges on the information page or PDF they have with it

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Aren't they stated on whatever policy documents or statements that the policy holder has?

Long-standing client of bank is 'marked' as a target for a pension as he doesn't appear to have any direct debits to another pension provider.

Bank needs to meet targets for sales of pensions and make a few more quid off the client money just being eroded away by inflation on deposit.

Wasn't really in the market for one but the manager, who he knows well, gives him a bell and says he should meet up with the in-branch advisor.

Pops in and the benefits, funds and performance are explained to him with very little focus on charges.

It's a bank. Probably the most expensive place in the market to buy a pension (or any other savings/investment/protection product). The pricing actuaries that designed their products had the bank margin at the top of the needs pyramid and the client at the bottom. That's what they were employed to do, make more money for the bank and its shareholders. The client was just a profit conduit.

The in-house sales man/woman decided that, based on the clients investment experience (money on deposit only), they'd advise him to go for a conservative fund. He signs up and has no recollection of ever getting a policy schedule or disclosure document.

Might have happened. Might not.

PaddyW said:

OK, got some more info. Asset mix is equities, bonds, cash and properties. A fairly poor mix overall. He is 46 so should really be more heavily invested in equities.

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The Evergreen has a heavier weighting in property and that has been a drag on the fund. This is a comparison in the difference in returns between the Evergreen and the Managed fund




This is what it looks like in money, using the example of investing in €10,000.



I get "my pension is rubbish" all the time. Usually it's the fund you are investing in. As Kev said already, there are plenty of funds to choose from within the existing PRSA that will outperform the Evergreen fund.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Sounds exactly like what I imagined to have happened, GSheehy. I asked my friend for any documents he received when opening the fund, but he either doesn't have them or can't find them. Asked him about charges and I may as well have been speaking Swahili!