The reason a second was set up was that my original one had been taken out with Canada Life, and I contributed to this the same amount every month and then topped up the difference depending on profit each October , I would then sometimes increase the monthly contribution if I thought business was going well, then in 2016 I was told by Irish Life that I was no longer able to add lump sums to this policy even though I queried this at the time , and was told I would have to start a new policy for any lump sum contributions. Do you think I was given wrong information?If you are still working, why not leave your personal pension alone until you retire?
It definitely makes sense to keep maximising your pension contributions for the time being but I'm curious why you felt the need to set up another pension - is there some reason why you couldn't use the personal pension?
I really don't know, to be honest, but it seems a bit odd to me.Do you think I was given wrong information?
Amount | € 100,000 | |||
Allocation | 102% | |||
Invested | € 102,000 | |||
Illustrative Annual fee | 2.41% | using Irish Life MAPS 4 Investment Bond product as a proxy because fee disclosure for ARF is opaque | ||
Commission | 3.00% | |||
Commission Paid | € 3,000.00 | 5% Growth | Charge | |
Year | 1 | € 107,100 | € 2,581.11 | |
Year | 2 | € 109,744.83 | € 2,644.85 | |
Year | 3 | € 112,454.98 | € 2,710.17 | |
Year | 4 | € 115,232.06 | € 2,777.09 | |
Year | 5 | € 118,077.71 | € 2,845.67 | |
Cummulative Charges | € 13,558.89 | |||
It looks like the commission is "only 1%" when you focus on allocation rates | ||||
For illustrative purposes only |
Equally if anyone has an existing contract with a statement in writing to the effect that the 102% allocation means it will only effectively cost you 1% then in principle you would have a case to have the contract set aside on the grounds that you have been misled.
open the floodgates on that one!!
After meeting with my accountant and their financial planner,(a new addition they now have) I was advised that as I was in reality going to phase my retirement over the next 5 years or so , and am not in need of the money at the moment, I would be better off moving my funds to a self administered pension ,where I would be able to cash in , as I needed it ,and also it would be more tax efficient and the charges are more transparent.l would then move to Self administered ARFs as I retired each section of the pension (my layman's term).please do us a favour and post what your accountant says
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