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27-01-2020, 20:16   #1
topmanamillion
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AVC Advice

I'm looking into starting an AVC but I'm confused by it all.
The only AVCs I can find are cornmarket and Irish life but I presume there must be more. A few more options here would be good to compare charges and fees.

I'm thinking of paying in €200 per month (€120 + €80 tax relief). My understanding is 40% tax relief. Do I have that correct?

What is the maximum amount that a pension lump sum can be topped up to tax free?

I work in the public sector and have probably 30 years to go before retirement.

I realise I'll need to speak to a financial advisor but any tips would be appreciated.

Last edited by topmanamillion; 27-01-2020 at 20:23.
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28-01-2020, 10:35   #2
Static M.e.
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I'm also interested in this and while I don't have any answers for you here are some things to consider.

If you work in the Public Sector then your HR Dept should have a company that you go do an AVC with, which is usually Cornmarket. If you call Cornmarket they can do an assessment with you over the phone or in person to see how suitable you are for an AVC. It's free so I would do that as a starting point.

My understanding is that as you are already receiving tax relief on your Public Sector pension (Check payslip) so this amount would be deducted from the percentage limit for tax relief on pension contribution. Please see the following link from Revenue for more information.

https://www.revenue.ie/en/jobs-and-p...ributions.aspx

Please post back if you find out any useful information.
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31-01-2020, 16:35   #3
topmanamillion
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Originally Posted by Static M.e. View Post
I'm also interested in this and while I don't have any answers for you here are some things to consider.

If you work in the Public Sector then your HR Dept should have a company that you go do an AVC with, which is usually Cornmarket. If you call Cornmarket they can do an assessment with you over the phone or in person to see how suitable you are for an AVC. It's free so I would do that as a starting point.

My understanding is that as you are already receiving tax relief on your Public Sector pension (Check payslip) so this amount would be deducted from the percentage limit for tax relief on pension contribution. Please see the following link from Revenue for more information.

https://www.revenue.ie/en/jobs-and-p...ributions.aspx

Please post back if you find out any useful information.
I've been doing a bit of research over the last few days. I still have a few questions but it seems Cornmarket have a monopoly on the public sector as they have the contract and access to that market through the unions.

Cornmarket act as an intermediary for Irish life and have quite a lot of commission and fees.
In my case they'd want €595 for that initial consultation. They do have a no advice pathway which bypasses this.
And a 4% charge on every contribution plus a 1% management fee.
In my case, had I got advice from them I'd be paying over half my first year's AVC contribution in fees to Cornmarket and not into the AVC where I want it to go.

I found this thread on here (albeit from 3 years ago). But this was an interesting point from a poster who had sought independent financial advice:

"The summary: my Cornmarket AVC was bad value - it was an Irish Life AVC and, as he put it, Irish Life are 'C students', and he recommended that I move to Zurich where the returns are higher."
https://touch.boards.ie/thread/2057765266/1/#post104126630

The drawback with Zurich is its not taken at source so you'd have to set up a direct debit and sort out the tax back yourself with revenue. Not all that complicated to do.

Personally, I think I'm going to see an independent financial advisor at some stage. I'd steer clear of Cornmarket as they're obviously biased trying to sell you their product and you'll pay them extremely well for any advice they give you even if you don't realise you're paying them.

Last edited by topmanamillion; 31-01-2020 at 16:49.
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02-02-2020, 23:10   #4
Geuze
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www.labrokers.ie will sell you an AVC-PRSA with much lower fees.

No advice, execution-only.
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02-06-2020, 19:44   #5
yabadabado
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Quote:
Originally Posted by topmanamillion View Post
I've been doing a bit of research over the last few days. I still have a few questions but it seems Cornmarket have a monopoly on the public sector as they have the contract and access to that market through the unions.

Cornmarket act as an intermediary for Irish life and have quite a lot of commission and fees.
In my case they'd want €595 for that initial consultation. They do have a no advice pathway which bypasses this.
And a 4% charge on every contribution plus a 1% management fee.
In my case, had I got advice from them I'd be paying over half my first year's AVC contribution in fees to Cornmarket and not into the AVC where I want it to go.

I found this thread on here (albeit from 3 years ago). But this was an interesting point from a poster who had sought independent financial advice:

"The summary: my Cornmarket AVC was bad value - it was an Irish Life AVC and, as he put it, Irish Life are 'C students', and he recommended that I move to Zurich where the returns are higher."
https://touch.boards.ie/thread/20577...#post104126630

The drawback with Zurich is its not taken at source so you'd have to set up a direct debit and sort out the tax back yourself with revenue. Not all that complicated to do.

Personally, I think I'm going to see an independent financial advisor at some stage. I'd steer clear of Cornmarket as they're obviously biased trying to sell you their product and you'll pay them extremely well for any advice they give you even if you don't realise you're paying them.
Sorry to bump an old thread but can anyone confirm if Cornmarket is a 4% charge on every contribution?

I saw 4% mentioned on their website for each single premium contribution and 0% for each regular contribution.

Can anyone confirm what the difference in these are?
Edit: single premium contribution seems to be a lump sum payment.

Last edited by yabadabado; 03-06-2020 at 00:30.
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02-06-2020, 23:34   #6
Geuze
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I will do a Google search for "Cornmarket AVC fees"

https://www.google.com/search?q=corn...hrome&ie=UTF-8


First result:

https://www.cornmarket.ie/your-avc-scheme/
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02-06-2020, 23:34   #7
Geuze
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https://www.cornmarket.ie/uploads/12...randed_TUI.pdf

TUI AVC fees
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03-06-2020, 15:05   #8
yabadabado
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Yes I had seen those figures and the info ,my question was what was the difference between the 2 types of contributions, one is 4% and the other is 0%.
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04-06-2020, 09:36   #9
Geuze
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Regular premium = every week/month

Single premium = one-off lump sum
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07-06-2020, 14:11   #10
yabadabado
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For anyone interested,I rang Zurich and Cornmarket on Friday afternoon.
Both are 1% AMC.
Zurich has no set up fee but 2% contribution charge/98% allocation.
As mentioned Cornmarket is €595 set up fee and no contribution charge for regular contributions.
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07-06-2020, 16:20   #11
coylemj
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Originally Posted by yabadabado View Post
As mentioned Cornmarket is €595 set up fee and no contribution charge for regular contributions.
According to the Cornmarket charges sheet for the TUI scheme (link in post #7), there is a 2% charge for regular contributions.

Last edited by coylemj; 07-06-2020 at 16:23.
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07-06-2020, 17:02   #12
yabadabado
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Originally Posted by coylemj View Post
According to the Cornmarket charges sheet for the TUI scheme (link in post #7), there is a 2% charge for regular contributions.
Not all the charges are the same,all depends on who negotiated the deal.Although according to info on their site TUI are included in the list of 0% contributions and is different info than in post #7.

Mine is 0% for regular contributions,I queried it when I contacted Cornmarket.

Last edited by yabadabado; 07-06-2020 at 17:05.
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