Confused about hidden Pension fees

CPTM

I'm finding it very stressful finding a pension fund to invest in. Why is it so difficult to find out who/what fund is the most expensive?! If the government really want us to be proactive about pensions, shouldn't they introduce laws to create complete transparency, for example a standard example to be used by every pension company:

You Invest 10,000 euro
Assume a fund value increase of 5% per year for illustration purposes
Total breakdown of costs relating to Fund per year:
X
Y
Z

/End rant

Can anyone advise me what to do? 60k initial deposit, and I'm allowing for 1000 per month thereafter. I've another 30-35 years of working so I'd be a fairly high risk candidate since I've a good bit of time to recover from any downturn. I would see myself as Prism 5 or 6 level. No idea where to go next, because I've no idea how to identify who is cheap and who is charging me a crazy amount of commission since they all give different workings.

Geuze

CPTM wrote: »

I'm finding it very stressful finding a pension fund to invest in. Why is it so difficult to find out who/what fund is the most expensive?! If the government really want us to be proactive about pensions, shouldn't they introduce laws to create complete transparency, for example a standard example to be used by every pension company:

You Invest 10,000 euro
Assume a fund value increase of 5% per year for illustration purposes
Total breakdown of costs relating to Fund per year:
X
Y
Z

/End rant

Can anyone advise me what to do? 60k initial deposit, and I'm allowing for 1000 per month thereafter. I've another 30-35 years of working so I'd be a fairly high risk candidate since I've a good bit of time to recover from any downturn. I would see myself as Prism 5 or 6 level. No idea where to go next, because I've no idea how to identify who is cheap and who is charging me a crazy amount of commission since they all give different workings.

Read the many discussions on this topic on AAM.

Also note that there are age-related limits to how much you can get tax relief on.

28064212

https://www.pensionsauthority.ie/en/PRSA_Providers/PRSAs/ - "PRSA Products and Charges - October 2019"

The J Stands for Jay

CPTM wrote: »

I'm finding it very stressful finding a pension fund to invest in. Why is it so difficult to find out who/what fund is the most expensive?! If the government really want us to be proactive about pensions, shouldn't they introduce laws to create complete transparency, for example a standard example to be used by every pension company:

You Invest 10,000 euro
Assume a fund value increase of 5% per year for illustration purposes
Total breakdown of costs relating to Fund per year:
X
Y
Z

/End rant

Can anyone advise me what to do? 60k initial deposit, and I'm allowing for 1000 per month thereafter. I've another 30-35 years of working so I'd be a fairly high risk candidate since I've a good bit of time to recover from any downturn. I would see myself as Prism 5 or 6 level. No idea where to go next, because I've no idea how to identify who is cheap and who is charging me a crazy amount of commission since they all give different workings.

If you get quotes from different companies on the same basis, you can compare X, Y and Z to see which is cheaper. The disaster of a quote you get had been (badly) determined by regulations already. Just make sure the fund you choose is giving the same 5% growth in each quote. If I was doing it, of get separate quotes for the 60k and the monthly payment to make it easier to compare.

jimmy456

its purposely kept confusing by the life companies. Those quotations should be binned on sight as they add no value to you in that you can't get the full charges from them and the growth returns is based on a lot of assumptions.

Try a stockbroker, they are governed by different rules and their costs are more transparent. You will also have a greater investment selection rather than the packaged funds from the life companies.

Dont get bogged down on the different funds between all the companies. All a fund does is give you access to an asset class like the equity market. They are either passively or actively managed. The higher risk level the greater the exposure to that asset class. Say a 3 rated fund could have 40% equities and the 4 rated fund could have 50% etc. Understand your risk profile first and then go from there to buy those assets.

The person you should be researching is the investment manager. They will be the one that will provide the greatest value to your pension performance. After that, all the companies in the market are a distribution channel to the investment.

Saying that, I cannot stress the importance of just starting and getting invested due to compounding.