PRSA Pension Advice

joeyhh

Hi,

My employer has been making pension deductions from my salary but is now putting pressure on me to chose a pension scheme as they don't provide one.

I have zero financial knowledge or experience and although I've tried to do my research the more I read the more confusing it becomes.

The PRSA pension I'm about to opt for is Zurich Prisma 5 through a FA in Galway. Management fees are 1% and contribution fees are 5%. My main worry is that I've read 5% contribution fees are very high. However, my employer is matching 5% of my contributions so am I right in saying that this will offset the high fees??
i.e. I contribute €200, employer contributes €200 and I get charged €20 contribution fee. If that's the case I don't find it too unreasonable as the way I see it that comes out of my employers contribution rather than mine.

I know I could shop around for a PRSA with no contribution fee but I have a time deadline to find a scheme and without understanding the financial sector the above scheme and fees sound reasonable to me.

Thanks for your help!

Henry Ford III

Your employer shouldn't be deducting any pension contributions from your salary if there's nowhere to put them I'd have thought.

joeyhh

They have been taking the money as they want to be seen to be providing pensions for their staff. Didn't make much sense to me but it's recorded on my payslip and they do have the money waiting as a lump sum to start the pension.

silent_spark

joeyhh wrote: »

They have been taking the money as they want to be seen to be providing pensions for their staff. Didn't make much sense to me but it's recorded on my payslip and they do have the money waiting as a lump sum to start the pension.

How long have they been doing this for?

joeyhh

4 months but they now want me to provide details of my pension provider before they continue making the deductions.

silent_spark

I can't offer any advice on choosing a PRSA, but they're going about it a little backwards, and should really have been remitting each month's deductions within 21 days. Are they offering each staff member the opportunity to choose a particular PRSA provider? Seems a little admin-heavy from their point of view, but great for you as you get to choose your preferred provider.

Regardless, in case you don't know, your employer must "allow reasonable paid leave of absence, subject to work requirements, so that excluded employees can set up a Standard PRSA". Here is a link to the rest of their obligations.

The J Stands for Jay

joeyhh wrote: »

Hi,

My employer has been making pension deductions from my salary but is now putting pressure on me to chose a pension scheme as they don't provide one.

I have zero financial knowledge or experience and although I've tried to do my research the more I read the more confusing it becomes.

The PRSA pension I'm about to opt for is Zurich Prisma 5 through a FA in Galway. Management fees are 1% and contribution fees are 5%. My main worry is that I've read 5% contribution fees are very high. However, my employer is matching 5% of my contributions so am I right in saying that this will offset the high fees??
i.e. I contribute €200, employer contributes €200 and I get charged €20 contribution fee. If that's the case I don't find it too unreasonable as the way I see it that comes out of my employers contribution rather than mine.

I know I could shop around for a PRSA with no contribution fee but I have a time deadline to find a scheme and without understanding the financial sector the above scheme and fees sound reasonable to me.

Thanks for your help!

It's very high.

joeyhh

Yes it's up to each staff member to source their own PRSA. In fairness they have been very flexible in giving me time off to meet FA and get it sorted.

silent_spark wrote: »

I can't offer any advice on choosing a PRSA, but they're going about it a little backwards, and should really have been remitting each month's deductions within 21 days. Are they offering each staff member the opportunity to choose a particular PRSA provider? Seems a little admin-heavy from their point of view, but great for you as you get to choose your preferred provider.

Regardless, in case you don't know, your employer must "allow reasonable paid leave of absence, subject to work requirements, so that excluded employees can set up a Standard PRSA". Here is a link to the rest of their obligations.

joeyhh

McGaggs wrote: »

It's very high. You'll be charged a €40 fee each month.

If total monthly contribution is €400 and contribution fees are 5% how will I be charged €40 a month?

Merowig

If you can choose a PRSA to which your employer will make contributions go to a PRSA without contribution fees:

You can have a Zurich PRSA via LA Brokers https://www.labrokers.ie/pensions/
1% AMC - 0 Contribution fees
You will save a significant amount over the time by avoiding the contribution fee.

Geuze

McGaggs wrote: »

It's very high. You'll be charged a €40 fee each month.

5% of 400 pm is 20 pm.

The J Stands for Jay

Geuze wrote: »

5% of 400 pm is 20 pm.

Looks like the weekend started early for me