Zurich PRSA /AVC advice please!!

[Steven Barrett]

If you open a cash fund with Zurich, they basically open an AIB Deposit Account for you. They send you a bill once a year for hundreds (maybe thousands of Euros). It's a scam, pure and simple.
A cash pension fund is a simple savings scheme, it is not a complex financial instrument. The Govt could easily open a product, similar to the State savings scheme to allow people to avail of the tax relief and build a secure fund. This would be particularly useful to people who are turbo charging their pension with final year payments, maximising the allowable contributions. They, generally, have no desire for risk, but will do very well from the tax relief, especially if they are 40% payers.
Once individuals reach pensionable age and have a sizable fund then there may well be value to be had from paying a professional financial advisor to organise the best pension arrangements. But the saving bit, that's just money for old rope.

How it is a scam?

 

[Allpartied]

How it is a scam?

A scam is when a product is sold as something valuable when it is actually not that valuable. Usually the scammer uses lots of fancy jargon, or deceptive advertising to present his product as somehow magical, or unique.
So opening a deposit account is not difficult, it doesn't cost anything. I can do it, it doesn't require any special skills.
How does a company justify charging thousands of euros for doing that?

 

[RedOnion]

How it is a scam?

You don't remember this thread?

https://www.askaboutmoney.com/threa...k-about-retirement.210617/page-8#post-1594385

 

[Allpartied]

You don't remember this thread?

https://www.askaboutmoney.com/threa...k-about-retirement.210617/page-8#post-1594385

Yes, it is a bug bear of mine and it seems unlikely to change, so probably best to just suck it up for the good of my blood pressure.

I've no doubt the financial institutions do some work for the money, but High Street banks also do a fair bit of work for looking after savings. They have to report, licence, conform to all sorts of complex rules/regulations, deduct taxes, but they don't charge money for savings accounts, well not yet, at least.

 

[RedOnion]

but they don't charge money for savings accounts, well not yet, at least.

Of course they do. Just you don't see it.
In a 'normal' interest rate environment, retail deposit rates available from banks are less than what can be achieved through money market funds that a pension would be investing in. Just in the current interest rate environment they can't do that.

 

[Steven Barrett]

If you open a cash fund with Zurich, they basically open an AIB Deposit Account for you. They send you a bill once a year for hundreds (maybe thousands of Euros). It's a scam, pure and simple.
A cash pension fund is a simple savings scheme, it is not a complex financial instrument. The Govt could easily open a product, similar to the State savings scheme to allow people to avail of the tax relief and build a secure fund. This would be particularly useful to people who are turbo charging their pension with final year payments, maximising the allowable contributions. They, generally, have no desire for risk, but will do very well from the tax relief, especially if they are 40% payers.
Once individuals reach pensionable age and have a sizable fund then there may well be value to be had from paying a professional financial advisor to organise the best pension arrangements. But the saving bit, that's just money for old rope.

What costs do an insurance company have in managing any money? Remember, they don't lend out any deposits to other policy holders. They have to pay their staff, building costs, regulatory costs, insurances and some money for profit. If they don't charge anything, why would they accept any money in a cash fund?

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

 

[deco87]

I agree completely, complete scam . It's very wrong. Unfortunately at the start the advisor was poor also .
Lesson learnt albeit too late
Thks for reply