PRSA charges

sharon b

I a very new to this PRSA thing.

I am hoping to retire in 5-7yrs, and have a DB from my last job.

I have been quoted the below

For a Monthly amount of €800 gross the allocation rate is 4.25% and the FMC is 1% this for a contribution of between €9001 and €11,999

 If you contribute €12,000 (€1,000 per month) per year the rate is 3.5% allocation rate dropping to 3% after 5 years and the FMC is 1%

Should I go with this (the 12k seems a better deal) or try to negotiate??

The above is with a firm which works with my new employer and can deduct at source which obv simplifies things.

Thanks

Your decision here is whether you want to pay €2,856 or circa €2,820 in contribution charges over the next 7 years, or not pay those charges.

It's a hefty price to pay for the salary deduction facility (something that can be replicated by uploading the PRSA Certificate via My Account) and a recommendation on a fund based on your risk profile (something that can be replicated with an online tool).

You'd have to take control of the transaction yourself though and do it on an execution only basis, away from the firm that's selling you the product on the above terms.

Execution Only means - you choose the product, provider and fund/s.

sharon b

Thanks! Any recommendations for who to go through?

@sharon b

Sorry @sharon b , I can't do that as I own an execution only pension business.

Maybe Google execution only PRSA or someone else might give you a heads up.

It's a service that's doesn't suit everyone so you take your time researching it.