Pension guidance

Andrea B.

Hi.
Would appreciate some guidance as weak on this subject.
Basically in early 2015 a DB fund from an old employer was closed giving me a 100k to transfer.

I was "independently" guided by a broker to a New Ireland non standard PRSA.
It is now valued at 103k after annual fees of 1.2k removed.
It is a BNYM Global Real Return Fund.

I am not happy.
Obviously, such bad returns aside, charges are being taken against my initial transfer.
Are there PRSA schemes whereby fair charges are levied against the return on investment only?

Thanks in advance.

ANXIOUS

What are the areas you are unhappy about?

Andrea B.

ANXIOUS wrote: »

What are the areas you are unhappy about?

The performance and fees.

Hani Kosti

What was the allocation rate of your original investment?
Out of curiosity did the broker discuss PRB? Just wondering why PRSA was the best option

ANXIOUS

Andrea B. wrote: »

The performance and fees.

OK, just wanted to see what points in particular.

In relation to fees, do you still have the original recommendation of why the advisor suggested you go this route? It might be called something along the lines of a reasons why letter? Is the advisor a tied agent or independent?

Performance the fund its self looks like it's doing quite poorly this year. But you should have the ability to perform Fund switches so I would meet the advisor again and discuss.

Did you get 100% of your transfer value invested?

Geuze

Andrea B. wrote: »

Hi.

Obviously, such bad returns aside, charges are being taken against my initial transfer.
Are there PRSA schemes whereby fair charges are levied against the return on investment only?

AFAIK, the AMC is always a % of the whole fund.

Henry Ford III

Advising anyone to transfer out from a DB scheme is potentially dodgy.

Commission disclosure is mandatory too.

I'd ask the advisor on what basis the recommendation was made and did he/she comply with all requirements.

Squatter

Henry Ford III wrote: »

Advising anyone to transfer out from a DB scheme is potentially dodgy.

The OP states that the DB scheme was closed and she was given €100K to transfer.

Looking at the performance of my ARF for the past 2 years, I'd say that a growth of over 4% gross isn't all that bad! Not what one would have liked, obviously, but not too bad!

Andrea B.

Hi.
Thanks so much for the responses.
The history was that I had let a deadline date sneak up on me to allocate from the DB scheme which was closing or else it was defaulting to a Zurich Life PRSA.
The broker is a relative and I requested that they do as they would see fit based on my almost 50 age and circumstance.

No issues here, but as I now look at things closer I have difficulty getting my head around the fees being levied (as seen from the New Ireland statement) against the complete amount.

I am of the school of a fair days pay for a fair days work and would have seen it as more fairer system of fees being reflective of positive returns.

Are there such managed schemes/funds available to me?

Henry Ford III

I'd say you're stuck most likely OP. Chances are there are early encashment or transfer penalties.

You could have a look at what alternative funds are available within your existing policy however.

The J Stands for Jay

Henry Ford III wrote: »

I'd say you're stuck most likely OP. Chances are there are early encashment or transfer penalties.

You could have a look at what alternative funds are available within your existing policy however.

No transfer penalties are allowed on PRSAs.