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Help with pension rates and fees

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  • 02-02-2015 6:36pm
    #1
    John_caffrey
    Registered Users Posts: 88 ✭✭


    Hello everyone, newbie to this great and strong community website.. please help.
    My wife received a mail a few weeks ago about her pension... She has been a few years at her job... Approx figures are that she pays 20 €/week to the pension and her employer contributes same I guess. Anyway the total for last year from the Irish life letter showed that she had ~2,000 €.
    Now the prob is, they show the file maintenance and commission fees etc bla bla is like 150 euros! That's like 10 %. What are they doing that deserves all these charges?! and may you advise me:
    - opinions on best pension plans and agencies
    - is there a mistake or is it the way it is
    - any suggestions about pension plans for a young person (under 30 y old) for the long term?

    I understand that your reply is just an opinion and no one takes any responsibility. please inform and educate me.
    Tagged:


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    #2
    Mrs OBumble
    Registered Users Posts: 25,717 ✭✭✭✭Mrs OBumble


    Just bumping this.

    My situation is very different, but I'm also looking for a source of information about PRSA products. It seems mad to me that so many of them charge the maximum level of fees (I think the word is "cartel"?).

    I realise that consolidated information (rates, fees, scheme-performance) is a product that analysts sell - and am willing to pay for it. But it really irks me to have to invest hours explaining my situation to an advisor for them to earnestly say "In your situation you need a PRSA, we recommend ours."

    I've googled a fair bit, but most of the information out there seems to be very out of date.


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    #3
    Browney7
    Registered Users Posts: 3,099 ✭✭✭Browney7


    John_caffrey wrote: »
    Hello everyone, newbie to this great and strong community website.. please help.
    My wife received a mail a few weeks ago about her pension... She has been a few years at her job... Approx figures are that she pays 20 €/week to the pension and her employer contributes same I guess. Anyway the total for last year from the Irish life letter showed that she had ~2,000 €.
    Now the prob is, they show the file maintenance and commission fees etc bla bla is like 150 euros! That's like 10 %. What are they doing that deserves all these charges?! and may you advise me:
    - opinions on best pension plans and agencies
    - is there a mistake or is it the way it is
    - any suggestions about pension plans for a young person (under 30 y old) for the long term?

    I understand that your reply is just an opinion and no one takes any responsibility. please inform and educate me.

    Who sold the plan to her? Likely the insurance company is taking some premium charge for themselves and paying a renewal commission to the advisor. The charges could also be reflecting surrender charges she'd only incur if the plan moved elsewhere.


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    #4
    The J Stands for Jay
    Registered Users Posts: 5,664 ✭✭✭The J Stands for Jay


    Mrs OBumble wrote: »
    But it really irks me to have to invest hours explaining my situation to an advisor for them to earnestly say "In your situation you need a PRSA, we recommend ours."

    Sounds like you're going to a bank or Irish Life and expecting them to be impartial. Look for a financial advisor who isn't a tied agent of a PRSA advisor and they would show less bias. If you go to the IBA or PIBA websites (they are two broker associations), they would likely have a list of brokers in your area.


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    #5
    The J Stands for Jay
    Registered Users Posts: 5,664 ✭✭✭The J Stands for Jay


    If you don't want to involve a broker, you could approach the providers directly to see what they can offer you. Here's a list:http://www.pensionsauthority.ie/en/Regulation/PRSAs/PRSA_Providers_Products_Register_October_2014_11.pdf


  • Options
    #6
    NewCorkLad
    Registered Users Posts: 957 ✭✭✭NewCorkLad


    Mrs OBumble wrote: »
    Just bumping this.

    My situation is very different, but I'm also looking for a source of information about PRSA products. It seems mad to me that so many of them charge the maximum level of fees (I think the word is "cartel"?).

    I realise that consolidated information (rates, fees, scheme-performance) is a product that analysts sell - and am willing to pay for it. But it really irks me to have to invest hours explaining my situation to an advisor for them to earnestly say "In your situation you need a PRSA, we recommend ours."

    I've googled a fair bit, but most of the information out there seems to be very out of date.

    It sounds like you are dealing with a bank you will never get a good deal through a bank when it comes to a pension. You need to source a financial broker in your area who will give you impartial advice and will be able to reduce your charges.

    Also if you are self employed I would stay away from PRSA's they are more expensive and restrictive than personal pensions in the vast majority of situations.


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    #7
    NewCorkLad
    Registered Users Posts: 957 ✭✭✭NewCorkLad


    John_caffrey wrote: »
    Hello everyone, newbie to this great and strong community website.. please help.
    My wife received a mail a few weeks ago about her pension... She has been a few years at her job... Approx figures are that she pays 20 €/week to the pension and her employer contributes same I guess. Anyway the total for last year from the Irish life letter showed that she had ~2,000 €.
    Now the prob is, they show the file maintenance and commission fees etc bla bla is like 150 euros! That's like 10 %. What are they doing that deserves all these charges?! and may you advise me:
    - opinions on best pension plans and agencies
    - is there a mistake or is it the way it is
    - any suggestions about pension plans for a young person (under 30 y old) for the long term?

    I understand that your reply is just an opinion and no one takes any responsibility. please inform and educate me.

    Unfortunately if her employer has set up the pension she is stuck with contributing to that pension. If it is a small company she should talk to her employer and see if he would be willing to shop around and possibly reduce the charges on the pension plan.


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    #8
    John_caffrey
    Registered Users Posts: 88 ✭✭John_caffrey


    Guys you are so kind, thanks for the replies. I guess we will still have to do more reading and ask around, I will start with the employer as you mentioned, then contact Irish life... and last choice is an adviser as that might cost a lot. I am not sure what you mean by bank... all I know is we got a letter from Irish Life but will read more...


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