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Help with Eagle Star Pension Funds

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  • 21-12-2010 2:52pm
    #1
    OnLooker
    Registered Users Posts: 705 ✭✭✭


    I have just been made permanent in my current role and would be like to join the company pension fund (Defined Contribution Pension Fund).

    I am 30 yrs old and have yet to start a pension. I am currently on €52k and save approx €1300 a month. In the default company scheme, the company contributes 8% of basic salary per month and the employee contributes 2%.

    I'm very much a novice to all the pension funds so any help would be greatly appreciated. The company scheme is with Eagle Star.

    I can go with the PensionSTAR (Annuity) investment strategy or you the matrix fund choice.

    The matrix fund has the following choices:
    1. Equity Portfolio Fund (5*5 Global)
    2. Global Equity Fund (Dividend Growth)
    3. Managed Fund (Balanced)
    4. Utilised with Profits Fund (SuperCAPP)
    5. Fixed Internet/Bonds (Long Bond)

    Has anyone got any opinions on these funds and their performance?

    Working off the 10% of salary per year I think I should probably add AVC contributions to make up for lost time over the last few years.

    The AVC allows you to choose from the Matrix list but with enhanced sector breakdown like US, Europe etc ... or go with the PensionSTAR (Annuity) or PensionSTAR (ARF). Not sure what to do here?

    Any help is greatly appreciated.


Comments

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    #2
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    I hate it when employers give you a choice, and then no advice. In fairness, they are not pension advisers themselves and they need to allow for choice, partly so they cant be blamed if the pension dives!

    This forum is probably not the best place to seek advice on an issue like this - but first of all read the company pension handbook which should provide more details on these plans and their associated risk and growth strategies. I suggest you leave sector breakdowns for a later date - you should be able to transfer your fund around once a year without penalty.

    Spreading your money across all five funds is probably a reasonable approach but the fixed bonds are generally for those nearing retirement.

    You should really find a friendly broker who will advise you for a fee..


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