CWPS V PRSA Charges

pmchill16

Hi, I'm looking for a bit of advise?

How does the Construction Workers Pension Scheme (CWPS) charges compare to PRSA charges.

I have an opportunity to join the CWPS and was wondering how the charges outlined below compare to a PRSA?

As I understand it the Standard PRSA can charge a maximum of 5%.

CWPS incur a 0.35% fund charge each year

CWPS additional investment management fee reduces over time as part of the CWPS lifestyling strategy, from 0.45% for the sub funds at younger ages, down to nil as a member approaches age 65.

CWPS looks favourable against the PRSA. Am I missing something? Thanks.

Extract from the CWPS website

Charges are very competitive in comparison to other pension schemes. There is no administration charge on pension contributions paid to CWPS so that means that 100% of pension contributions and AVCs paid to CWPS are allocated to the members' Pension Account. CWPS do not apply commission fees to Transfers in or Transfers out of CWPS.

Individual pension account invested in CWPS incur a 0.35% fund charge each year towards the running costs of the fund. As well as this small charge, investment management fees are incorporated into the investment returns delivered to the fund. The level of additional investment management fee reduces over time as part of the CWPS lifestyling strategy, from 0.45% for the sub funds at younger ages, down to nil as a member approaches age 65. There are no hidden charges and this is lower than other pension providers in the market, and substantially lower than any individual pension arrangements.

Atlantic Dawn

I'd also have a look at fund performance when comparing between them.