Best AVC and Best Financial Broker currently available in Ireland - 2024?

TestLink

I am currently working in Civil Service. I would like to start an AVC to reduce the tax I pay and if possible retire early.

Which is the best AVC currently available in Ireland? Which broker is the best and cheapest option for joining this AVC?

Geuze

https://www.boards.ie/discussion/2058347366/best-avc-and-best-financial-broker-currently-available-in-ireland-2024

The cheapest option is to use a discount broker, but that is execution-only, no advice.

TestLink

https://www.boards.ie/discussion/comment/122034262#Comment_122034262

In the case of an execution only broker, what all decisions I have to take - How much I would like to invest every month, In what they have to invest it etc?

Any suggestion for a broker if I need to get advice?

Geuze

Execution-only broker:

• limited choice of provider, e.g. www.labrokers.ie use Zurich
• you choose the monthly contribution
• you choose the funds

If you want advice, Cornmarket specialise in public service AVCs, they charge 595 set up fee.

TestLink

https://www.boards.ie/discussion/comment/122035313#Comment_122035313

Do Cornmarket charge fee only once (like 595K) ? Or do they charge anything yearly?

Any one cheaper than CornMarket who only chage a once off fee for their advise?

coylemj

I assume the OP wants to make contributions to an AVC via the payroll so s/he gets the tax benefit straight away. I'm not sure if an AVC scheme which is allied to your occupational scheme can involve any old supplier that you choose.

TestLink

https://www.boards.ie/discussion/comment/122037850#Comment_122037850

Ys, I want to deduct AVC amount directly from my payroll before tax is applied.

AndrewJRenko

Check with your trade union. They usually have an arrangement with a broker, often Cornmarket, for reduced fees. Though it's always worth benchmarking these fees against other options available in the market.

coylemj

https://www.boards.ie/discussion/comment/122038037#Comment_122038037

In that case you will be limited to whatever AVC schemes are already in place. A supplier (e.g. Irish Life, Cornmarket etc.) talks to your employer, they agree that a scheme will be set up whereby employees can elect to have voluntary deductions made to the AVC. But before it can go ahead and the money deducted from your gross rather than your net pay, it has to be approved by Revenue.

Which is why I'm telling you that you cannot simply go out into the marketplace and select an AVC supplier for you personally - an AVC scheme which will allow you to make contributions via tax-free deductions from payroll has to be setup with the agreement of your employer and approved by Revenue.

endacl

https://www.boards.ie/discussion/comment/122037438#Comment_122037438

One off set up fee. They charge a 10% fee on lump sum payments. If you decide to chuck an extra grand in one year, it'll cost you 100.

Geuze

https://www.boards.ie/discussion/comment/122038037#Comment_122038037

If you want the convenience of payroll deduction, then you may have no choice other than Cornmarket brokers.

The PS employers tend to allow just one broker to have payroll deduction.

You don't have to be a genius to realise that the firm in this position will exploit their monopoly position, and charge higher fees.

That is why I encourage people to use discount brokers, but of course there isn't payroll deduction.

Geuze

The typical fees on most (but not all) pension plans are as follows:

(1) charge on each contribution, e.g. 95% allocation, 97% allocation. 100% allocation means zero charges on the contribution

(2) AMC on each fund. These are often 1%, sometimes higher, you might be able to get 0.75%

(3) policy fees. These should be zero, but watch out.

Cornmarket charge a once-off 595 set-up fee if you want advice. They now offer execution-only set-up fee for 100 euro.

https://cornmarket.cdn.prismic.io/cornmarket/c8b0cfc4-e03e-4055-9be0-59b240663b2a_20016+Remuneration+Doc+04-24_FA_WEB.pdf

Geuze

The fees are on the Cornmarket website, although a bit hard to find.

Geuze

To be fair to Cornmarket, you can set-up an AVC for 100 euro with no advice, pay 0% contribution charge, and 1% AMC.

TestLink

https://www.boards.ie/discussion/comment/122038574#Comment_122038574

CornMarket Contribution Charge : 4% of each single premium ! So 4 euro per month if I put 100 euro in to AVC each month. That is extortion.

If i go for Execution only AVC would I be able to move funds to other schemes?

Also with Execution only AVC do I need to go to revenue each year to claim the tax back, as the AVC is deducted by direct debit in this case and not before tax?

Geuze

https://www.boards.ie/discussion/comment/122039413#Comment_122039413

Single Premium is a once-off contribution.

Geuze

https://www.boards.ie/discussion/comment/122039413#Comment_122039413

You mean do a fund switch? Yes, pension assurers usually allow a few fund switches for free each year.

Geuze

Yes, you may need to mention the PRSA-AVC contributions in your annual Form 12 tax return.

Maybe just once, at the start, I'm not sure.

Or maybe each year.

Henry Ford III

https://www.boards.ie/discussion/comment/122038476#Comment_122038476

No.

All occupational pension schemes require Revenue approval to be exempt approved.

Salary deduction merely requires the employers consent and cooperation.

p.s. Cornmarket are brokers and are not a "provider".

coylemj

https://www.boards.ie/discussion/comment/122046009#Comment_122046009

What are you saying 'no' to? I said that any AVC scheme required Revenue approval. And that the employer had to agree to the setting up of such a scheme.

I accept your point about Cornmarket not being a provider, not sure how you took issue with anything else I said.

The J Stands for Jay

https://www.boards.ie/discussion/comment/122047136#Comment_122047136

The employer doesn't have to agree to it being set up

Gusser09

https://www.boards.ie/discussion/2058347366/best-avc-and-best-financial-broker-currently-available-in-ireland-2024

Forsa have a scheme. Im with cornmarket. Dont worry about the initial few quid setting it up. Its pittance.

coylemj

https://www.boards.ie/discussion/comment/122048230#Comment_122048230

But isn't the employer's agreement needed in order to allow tax-free salary deductions to be made to that scheme?

Squeaksoutloud

Is it not possible to set them up yourself and claim the tax relief manually after? Similar to a PRSA?

coylemj

https://www.boards.ie/discussion/comment/122049527#Comment_122049527

Yes it is. But, in response to a direct question from me, the OP said he wants to get the tax benefit via the payroll deduction. See post #7.

That is why I’m saying that the employer needs to agree to the arrangements.

Cairnq1

If you want the convenience of salary deduction Cornmarket / Irish Life is your only option. you don't need to orgainse the tax relief as it's automatically deducted at source. The €595 fee is tax deductable so if a 40% tax payer net cost to you is €357. 100% allocation with an annnual management charge of 1% is on par (or better) with cost structures of PRSA AVC's with other Life Co.'s. Any broker (except execution only) will charge a fee for their time/advice and will likely be more than €595 (ask a few brokers, no harm in doinf a bit of research…. Cornmarket are high volume / cheaper.

lisabiscuit

I'm paying into an AVC. It comes out from my wage at source and it was organised and managed by Irish Pensions and Finance. I'm with the civil service too.

Alonzo Mosley

https://www.boards.ie/discussion/comment/122062830#Comment_122062830

Me too, I find them very good to deal with.

coylemj

https://www.boards.ie/discussion/comment/122062830#Comment_122062830

are you getting tax relief at source i.e. is the deduction made from your gross salary?

lisabiscuit

https://www.boards.ie/discussion/comment/122065803#Comment_122065803

Yip, that's it alright

TestLink

How IPF compare to CornMarket? Can somebody share their experience?