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Pension

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Comments

  • Registered Users Posts: 1,788 ✭✭✭Cute Hoor


    I once upon a time had a PRSA with Irish Life, 5% fees.

    Per annum?


  • Registered Users Posts: 1,788 ✭✭✭Cute Hoor


    Standard fees seem to be 5% of contributions and 1% of total per year.

    Who is that with?


  • Registered Users Posts: 1,228 ✭✭✭The Mighty Quinn


    Cute Hoor wrote: »
    Per annum?

    5% on each payment made into pension. 1% per annum on whole pot on top I think it was.


  • Registered Users Posts: 1,228 ✭✭✭The Mighty Quinn


    Cute Hoor wrote: »
    Who is that with?

    Irish Life!


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    The fees on pensions are pretty ****ing outrageous IMO.

    Right now with interest rates at 0% and other things bubbling everywhere I would love an option to literally just put money aside and have zero risk. I don't want anyone to manage it. I don't want any service, I just want to put the money aside.

    Standard fees seem to be 5% of contributions and 1% of total per year. Just did a little spreadsheet and assuming "low risk" returns of 3% it would take 5 years to break even on the fees. It's just another con job.

    Those fees you're quoting are pretty high. I'd say most people pay nowhere near that, unless they have a standard PRSA, as those are the government approved charges for one of those.

    Shop around and you'll do much better.


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  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    I'm actually really confused about the END of my pension.

    At present I have approx;
    • 18,000 in an Irish Life pension at work (does this mean it's occupational pension rather than a PRSA?)
    • 12,000 in an Irish Life pension I had from my time contracting, not sure what type of pension it is, but I was getting 48% tax relief on it, executive pension or something it was called, here's the plan https://www.bline.ie/sites/retail/files/bline-content/complete-solutions1-company-booklet.pdf
    • 6,000 in an New Ireland non-standard PRSA (dunno what's non-standard about it) from when I used to pay into it by direct debit

    I'm mid 30s, current pension about 35K then. Still adding to the pension at work each month, about €670 between me and employer.

    I don't understand ARFs or AMRFs and that stuff :confused:

    I really don't know how much I'll have in my pot by retirement, but assuming I just add to my current work pension at same rate, for 30 years, at 0% growth, I'd have about 250,000 in that pot. How does that work for me?

    Final salary would be - say - 60K.

    An ARF is just where you invest your money after you've decide to 'retirec your pension. You invest in the same choice of unds, but you can take money out. They AMRF is the same, but it has restrictions on the amount you can withdraw. The government don't trust us to have money left by the time we're 75 without an AMRF.


  • Registered Users Posts: 5,368 ✭✭✭JimmyVik


    I'd recommend to put in what your employer matches at the start and see how it goes. You can change it usually whenever you want. Some people here will tell you to put every spare cent into a pension if you can which I find crazy.


    I did that and now in my 40s ive enough to retire and cant touch it for nearly 2 decades. PITH


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    Cute Hoor wrote: »
    Who is that with?

    5% and 1% are what the government set as the standard PRSA charges. Providers can charge less, but not more than that. It seems to be mainly charged on small funds with small contributions.


  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,544 Mod ✭✭✭✭L1011


    Standard fees seem to be 5% of contributions and 1% of total per year

    Pretty sure that that's on the high end. My employer PRSA is 3.5% and 1% and I seem to recall finding that quite steep in comparison to previous employers!


  • Registered Users Posts: 1,788 ✭✭✭Cute Hoor


    And also, an asset class that requires considerable maintenance work and expense over time. How do you put a value on your own time input to managing property investment?

    I heard a guy on the wireless years ago (could be from daft.ie) who said you could allow for 0.25 personyears to manage a rented property, a not insignificant ongoing cost.


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  • Registered Users Posts: 5,368 ✭✭✭JimmyVik


    L1011 wrote: »
    Pretty sure that that's on the high end. My employer PRSA is 3.5% and 1% and I seem to recall finding that quite steep in comparison to previous employers!


    Mine is 1% and 1%. And i think that is expensive.


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    JimmyVik wrote: »
    I did that and now in my 40s ive enough to retire and cant touch it for nearly 2 decades. PITH

    Early retirement is allowed from 50.


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    JimmyVik wrote: »
    Mine is 1% and 1%. And i think that is expensive.

    I'm getting 0% and something like 0.55% (depends on the fund).


  • Registered Users Posts: 1,788 ✭✭✭Cute Hoor


    JimmyVik wrote: »
    Mine is 1% and 1%. And i think that is expensive.

    I think it is too


  • Registered Users Posts: 1,788 ✭✭✭Cute Hoor


    McGaggs wrote: »
    I'm getting 0% and something like 0.55% (depends on the fund).

    Sounds more like it.


  • Registered Users Posts: 796 ✭✭✭jcon1913


    McGaggs wrote: »
    I'm getting 0% and something like 0.55% (depends on the fund).

    Would you name the fund so that posters here could benefit from those rates?


  • Registered Users Posts: 1,451 ✭✭✭FastFullBack


    McGaggs wrote: »
    I'm getting 0% and something like 0.55% (depends on the fund).

    I think I'm getting 0% and 0.12%. Have double checked with the provider as those fees seem super low


  • Registered Users Posts: 1,788 ✭✭✭Cute Hoor


    dublin49 wrote: »
    retirement planning is unique to each individual or couple and their particular circumstances.I would hope my comments would help posters make the correct decisions ,and as a poster fast approaching retirement with an interest in this topic I am on here to learn as much as give my views on certain aspects.

    That’s fair enough, I don’t know what happened for you backintheday but whatever works for you is good for you, investing in property (without availing of the tax benefit) would be at 20+ on the Risk Scale but if it works for you fair enough.

    At the end of the day all we all want is to have the few extra bob to live comfortably in retirement and leave a few bob to the kids to help them on their way, always hoping that the Fair Deal man doesn’t get his hands on it first. Best of luck to you whatever you choose.

    The attached gives an idea of fund performances over the last 20 years - obviously doesn’t take into account the tax free element – so you could add about 45% to each of those figures.
    https://www.rubiconic.ie/calculator/


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    I think I'm getting 0% and 0.12%. Have double checked with the provider as those fees seem super low

    No, I've mis remembered. I'm paying 0% and 0.15%, and the fund is vanguard passive global equity through Mercer.


  • Registered Users Posts: 1,451 ✭✭✭FastFullBack


    McGaggs wrote: »
    No, I've mis remembered. I'm paying 0% and 0.15%, and the fund is vanguard passive global equity through Mercer.

    ok Cool. Mine is an Irish Life passive global equity fund through Mercer.


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  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    ok Cool. Mine is an Irish Life passive global equity fund through Mercer.

    Looks like I'm being charged an extra 2bps for the cooler brand ;)


  • Registered Users Posts: 28,346 ✭✭✭✭AndrewJRenko


    McGaggs wrote: »
    5% and 1% are what the government set as the standard PRSA charges. Providers can charge less, but not more than that. It seems to be mainly charged on small funds with small contributions.

    They're the max charges rather than the standard. Full details of the charges for all PRSAs in the market are available.

    https://www.pensionsauthority.ie/en/i_want_to_start_a_pension_prsa/prsas/

    It's a bit silly to be paying a top of the market price while complaining that they are too expensive. It's a bit like complaining that all phones are a scam because you paid a grand for an Apple iPhone 12.


  • Registered Users Posts: 5,368 ✭✭✭JimmyVik


    McGaggs wrote: »
    Early retirement is allowed from 50.


    55 in my fund.
    50 if you are sick.


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    They're the max charges rather than the standard. Full details of the charges for all PRSAs in the market are available.

    https://www.pensionsauthority.ie/en/i_want_to_start_a_pension_prsa/prsas/

    It's a bit silly to be paying a top of the market price while complaining that they are too expensive. It's a bit like complaining that all phones are a scam because you paid a grand for an Apple iPhone 12.

    Set a maximum charge, and they'll often be used as standard charges.


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    JimmyVik wrote: »
    55 in my fund.
    50 if you are sick.

    Leave the job at 50, transfer to a buy out bond, take your lump sum and ARF at 50.


  • Registered Users Posts: 5,368 ✭✭✭JimmyVik


    McGaggs wrote: »
    Leave the job at 50, transfer to a buy out bond, take your lump sum and ARF at 50.


    If I could do that its still 9 years away :(


  • Posts: 25,611 ✭✭✭✭ [Deleted User]


    Where did you get your 'standard fees' from?

    Irish Life. I've asked around on this forum before and been told to go and pay someone for advice, which is kinda the whole thing I'm trying to avoid. :rolleyes:


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    JimmyVik wrote: »
    If I could do that its still 9 years away :(

    It's better than 14 years away...


  • Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    Irish Life. I've asked around on this forum before and been told to go and pay someone for advice, which is kinda the whole thing I'm trying to avoid. :rolleyes:

    I'd imagine advice would be cheaper than paying 5% and 1%.


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  • Registered Users Posts: 28,346 ✭✭✭✭AndrewJRenko


    Irish Life. I've asked around on this forum before and been told to go and pay someone for advice, which is kinda the whole thing I'm trying to avoid. :rolleyes:

    It's far from standard. Look through the spreadsheet of charges at the link posted above.


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