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Question on Pension (Comparison of fees)

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  • 24-04-2020 11:15am
    #1
    boredsuser123
    Registered Users Posts: 4 ✭


    I'm self employed and last year opted into a pension plan (Freedom in Retirement Plan from Zurich).
    Being honest, I don't really have much of a clue about fees etc and trusted the advisor.
    Looking at my Policy certificate, I see that my contribution is invested into 4 different funds, each incurring a Management fee of 1.25%. Is this reasonable? and how does it compare to other pensions out there?
    Tagged:


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    #2
    Mort5000
    Registered Users Posts: 419 ✭✭Mort5000


    Are you sure it is each, and not 1.25% overall?
    1.25% would be good.
    1.25% x 4 would not be good!


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    #3
    coylemj
    Registered Users Posts: 25,342 ✭✭✭✭coylemj


    boredsuser123 wrote: »
    ..... I see that my contribution is invested into 4 different funds, each incurring a Management fee of 1.25%.

    It's 1.25% on each quarter. Which equates to 1.25% of the total.


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    #4
    Geuze
    Registered Users Posts: 13,087 ✭✭✭✭Geuze


    An AMC of 1.25% is high, but not very high.

    You should check the other fees - are there any contribution fees / allocation rates / commission?


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    #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,622 Mod ✭✭✭✭Henry Ford III


    Commission disclosure is mandatory. Take this up with your advisor.


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    #6
    The J Stands for Jay
    Registered Users Posts: 5,658 ✭✭✭The J Stands for Jay


    Mort5000 wrote: »
    Are you sure it is each, and not 1.25% overall?
    1.25% would be good.
    1.25% x 4 would not be good!

    1.25% X 4 funds is exactly the same as 1.25% one one big fund.


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    #7
    Galway56736
    Registered Users Posts: 27 ✭Galway56736


    I'm also self-employed and my executive pension is also with Zurich - 100% allocation - amc 0.75%


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    #8
    kerriesgirl
    Registered Users Posts: 1 ✭kerriesgirl


    Hey, pensions adviser here. I'm guessing you have a regular premium "freedom in retirement" plan with 1.25% annual management charge. As someone else said, this sounds high but I recommend you go back to the literature you (should have) received at the start of the policy and check for a bonus at retirement. I think this product charges you a high-ish AMC but gives some back to you at retirement as either a percentage bonus of you fund or rebate of some charges. Advisor should have been clearer.

    On the other hand, it could be a 1% AMC (ok but you could do better) with maybe additional AMC of .25% for a non-standard fund. If so, ask again for the rationale behind the fund choice. Extra charges don't always mean bad, just as some cars cost more than others

    Just cos one person as stated above is getting 0.75% AMC doesn't mean you're getting done. It could be apples and oranges



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    #9
    Tradbanjo
    Registered Users Posts: 1 ✭Tradbanjo


    https://www.boards.ie/discussion/comment/113318467#Comment_113318467

    Does anyone know where i can get a pension with 0.75% or lower AMC? Best I have been offered is 1% and have shopped around a bit. Thank you



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