Pension

Deleted User wrote: »

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

Who is that with?

Cute Hoor wrote: »

Who is that with?

Irish Life!

The Mighty Quinn wrote: »

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

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.

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.

AndrewJRenko wrote: »

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.

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.

JimmyVik wrote: »

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

I think it is too

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?

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/

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.

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.

AndrewJRenko wrote: »

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.

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

JimmyVik wrote: »

If I could do that its still 9 years away

It's better than 14 years away...

[Deleted User] wrote: »

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.