Question on Pension (Comparison of fees)

boredsuser123

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?

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!

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.

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?

Henry Ford III

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

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.

Galway56736

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

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

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