So I've always had pension plans organised by my employers up until now but with current employer I have to arrange my own.
One thing that I noticed is that for the first 2 years commission is 50% of contributions and then the annual management charge is 0.5%
Is this reasonable for Occupational Pensions?
half your contribution is used to pay commission? that can't be right
If that 50% figure seems very wrong. Do you have a link to the pension plan?
to clarify the pension provider (Acorn Life) are saying that for the first 2 years of my pension 50% of contributions will be taken and then after that they have the lowest charges in the market of 0.5% per year.
50% of 24 months contributions seemed high to me as it effectively negates the contribution my employer will be making.
After 24 months you can bet that the sales guy will be back with some new angle which will involve fund switching with more exorbitant charges. Any time I hear of that company, it's their sales staff churning existing policies to get yet more commission, they treat their customers like cash cows.
You need to pay someone for independent advice and steer clear of the high-commission cowboys.
What type of fund? My employer's scheme has a 0.25% charge on my fund (but some funds are higher depending on asset mix)
I'd ask for that in writing with proof tbh on what the basis is.
No that’s not reasonable. Do not, do not use them. Find a local broker tell him/her you are shopping around and are very keen to keep charges down. The company you mentioned are very “different” in their “charging” methods versus Zurich Aviva etc
50% of contributions for what exactly?
.5% is excellent but not the 50% initial contribution charge. Depending on figures you could expect maybe 0%contribution and 1% management charge.
Acorn Life charge more than an angry bull. Get better advice and value elsewhere.
I fully agree with this statement, ie the need for independent advice, however outside of Dublin I have found it difficult to get independent advice, and i was fully willing/expecting to pay for it. Is there a list of independent pension advisers ?
What pension providers should I be looking at ? I always think its worth having some research done myself before engaging with a consultant.
Where are you based?
Does your employer get a kickback from these commissions?
Will your employer contribute using a different provider?