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What do I look for In a good private pension scheme?

  • 12-01-2011 12:50pm
    #1
    djburchgrove
    Closed Accounts Posts: 473 ✭✭


    I want to start a pension but am really clueless. What do I look for in a good pension scheme and What will they do for me down the years as i keep contributing?


Comments

  • #2
    ferga_com
    Closed Accounts Posts: 159 ✭✭ferga_com


    Whoever you're going to for your pension, you need to get the following information before you sign on the dotted line: -

    (1) What are the charges - charge per contribution and annual charge on the fund? A PRSA typically charges 5% of each contribution and 1% of the fund per year so this is a reasonable benchmark to start with. Some places charge less than this. I'd avoid any plan that charges more.

    Although for other types of pension plan, there are all sorts of jargon terms used to describe the charges - policy fees, bid/offer spreads etc. - the advisor should be able to explain them all to you in terms of euros and cents.

    (2) What type of pension product - PRSA, Personal Pension or Occupational Pension Scheme. These are the generic types and your advisor should explain the differences between them to you, as they're horses for courses.

    (3) What level of risk are you willing to take, bearing in mind that there's a relationship between the level of risk and the potential return over the long term?

    (4) Your advisor should also look at your overall financial circumstances and recommend a level of contribution that's appropriate. There's no point in struggling to put in a big pension contribution now at the cost of your lifestyle now.

    (5) If you're going to a broker, find out what companies s/he does business with and then ask why s/he is recommending a particular company over the other possibilities.


  • #3
    bailes
    Registered Users, Registered Users 2 Posts: 52 ✭✭bailes


    Main things to look for.
    1. Allocation rate (how much of your money is being invetsed)
    2. Fees/charges (policy fees, bid/offer spreads etc)
    3. Fund performance for pension provider
    Query and question the above with your broker and you will have gone a long way to getting the best deal and advice possible.

    Regards and best of luck


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