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pension with bank or broker

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  • 23-08-2012 3:42pm
    #1
    digzy
    Registered Users Posts: 3,049 ✭✭✭


    I've an offer from both the bank of ireland and a broker
    100% allocation, mgmt charge of .75% with boi or 1% with zurich through the broker.
    the broker argues that zurich have a wider range of funds, the boi refute it saying they all have similar funds depending on your choice.
    just wondering how these figures sound? can eagle star/aviva match boi?
    i'd be putting in the max for my age.


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    #2
    Browney7
    Registered Users Posts: 3,100 ✭✭✭Browney7


    digzy wrote: »
    I've an offer from both the bank of ireland and a broker
    100% allocation, mgmt charge of .75% with boi or 1% with zurich through the broker.
    the broker argues that zurich have a wider range of funds, the boi refute it saying they all have similar funds depending on your choice.
    just wondering how these figures sound? can eagle star/aviva match boi?
    i'd be putting in the max for my age.
    Whats your risk profile op? What Zurich funds has your broker recommended. If you are just investing in managed funds or index trackers there shouldnt be too much of a difference. Both providers have funds for all risk profiles but some of the Boi funds have an extra charge. The 0.25% would stack up after a few years. Broker is probably getting a nice chunk of commission as is the BOI rep so just bear that in mind


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    #3
    Gavlor
    Registered Users Posts: 6,180 ✭✭✭Gavlor


    Sounds like charges for a single premium contribution. To give you an idea of the commission, eg 20k single contribution, that particular boi contract will pay max 1% and the zurich contract pays 105% allocation, therefore 5% comm. ask the broker to increase ur allocation. On a side note boi have a better range of risk managed funds. Tho watch out for increases in management fee for different funds


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    #4
    Gavlor
    Registered Users Posts: 6,180 ✭✭✭Gavlor


    Double post


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    #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    BOI cannot give independent and impartial advice I think.


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    #6
    hwfs.ie
    Registered Users Posts: 25 ✭hwfs.ie


    The difference of using the broker should be impartial advice. The broker should be able to advise on New Ireland (BOI) funds as well as Zurich. the reason for the difference in the management charge is to do with commission for the broker.

    BOI will be charging approx 1% commission - you will see this on the disclosure report they have issued.
    The Broker will be charging approx 5% commission

    Zurich do have a contract with a 0.75% annual management fee so if you want Zurich with a lower management fee then ask the broker to take less commission.

    In terms of range of funds both companies have a wide range of funds so make sure you get one that suits your risk profile.


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    #7
    HowFinancial
    Registered Users Posts: 71 ✭✭HowFinancial


    If unsure of your current broker, suggest try a different broker. Bank often give "off the shelf" products. Broker should be better positioned to tailor pension product to your individual needs, and should have access to wider range of suppliers (including same product suppliers bank uses).

    More info on fees & charges here
    http://howfinancial.blogspot.ie/2011/05/retirement-planning-for-self-employed.html

    By the way, I think Zurich are an excellent company


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