Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Thinking of moving my Pension

Options
  • 06-04-2013 12:38am
    #1
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭


    Hey all,
    About 30 years old, and dropping €135 a month into a pension with AIB, but thinking of moving it to Irish Life due to the uncertainty of AIB atm. What do the good people here think of this, or should I stay with AIB?


Comments

  • Options
    #2
    phoenix999
    Banned (with Prison Access) Posts: 581 ✭✭✭phoenix999


    Wasn't Irish Life sold off a few weeks ago. The company at least was in profit, unlike AIB. Would you consider Zurich Insurance? Rock solid global company. My dad's pension with them has performed very well over the last few years.


  • Options
    #3
    okiss
    Registered Users Posts: 698 ✭✭✭okiss


    If you were going to move your pension I would have a look at a Zurich low cost prsa which you can get from prsa.ie
    At the moment each time you make a contribution aib are taking apox 5% of this before investing rest of your money in your pension.
    You will also be paying a management charge on top this.

    Prsa.ie are an Execution Only service so you decide what funds to invest your money in.
    The only charge you will pay is the management cost charged by Zurich.
    When you request information from them you can put in the comment box that you need information about moving your pension from Aib to Zurich. If your funds are moved directly from Aib to Zurich you will not have to pay tax or usc charges.
    I would not let AIB talk you out of moving your pension as once you do this you will not be paying a contribution charge of apox 5% each time you make a payment into your pension. In the long term you will be putting more into
    money directly into your pension funds which could give you a better income in retirement.


  • Options
    #4
    Browney7
    Registered Users Posts: 3,100 ✭✭✭Browney7


    phoenix999 wrote: »
    Wasn't Irish Life sold off a few weeks ago. The company at least was in profit, unlike AIB. Would you consider Zurich Insurance? Rock solid global company. My dad's pension with them has performed very well over the last few years.

    Op is it a PRSA you currently have or is it a personal pension? I imagine the Pension you have through AIB was an Ark Life pension through Aviva? Not sure if that has transferred to Irish Life already as Irish Life have the distribution through Aib.

    I wouldn't read too much into the parent company of an insurer to be honest. Irish Life's parent company is now Great west life who are pretty big. 135 per month isn't a hell of a lot so charging structures that a broker could offer you mightn't be great. I take it you are being advised by an insurance broker at the moment? Review what funds you are investing in also to make sure they are suitable for you


  • Options
    #5
    maskabun
    Registered Users Posts: 128 ✭✭maskabun


    okiss wrote: »
    The only charge you will pay is the management cost charged by Zurich.
    I just came to know from an agent that if I want to move to Zurich he will charge 3% for every 100e invested in the fund. I said that New Ireland charges only around 2% so he explained that because Zurich has representatives like us who are not their direct employees the charges are 3%. Is there any way I could cut down this extra charge?


  • Options
    #6
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    Browney7 wrote: »
    I take it you are being advised by an insurance broker at the moment?
    No broker. It's a PSRA. Not really investing any funds, just putting money into a pension. One of the main reasons for no investing, was that the pension was set up only a few months after sh|t hit the fan, and pensions were devalued due to invested interests going bust (from what I read at the time), so when asked, I said not to invest any of the money into shares, etc.

    Checked the latest letter from AIB, and it says the PRSA provider is ARK Life Assurance Co Ltd.

    It seems as well as the 5%, they also take a 1% each year for management fees.


  • Advertisement
  • Options
    #7
    digzy
    Registered Users Posts: 3,049 ✭✭✭digzy


    the_syco wrote: »
    No broker. It's a PSRA. Not really investing any funds, just putting money into a pension. One of the main reasons for no investing, was that the pension was set up only a few months after sh|t hit the fan, and pensions were devalued due to invested interests going bust (from what I read at the time), so when asked, I said not to invest any of the money into shares, etc.

    Checked the latest letter from AIB, and it says the PRSA provider is ARK Life Assurance Co Ltd.

    It seems as well as the 5%, they also take a 1% each year for management fees.

    You've mentioned the 2 most important things in your post. Allocation rate and mgmt fee.

    Just as a guide, boi offered 100% allocation .75% mgmt fee.
    Zurich offered 101% allocation and 1% mgmt charge.
    Professional advice from 2 different accountants advised me to pick the Zurich offer even though my uneducated opinion was that boi was a better offer.
    Now I'm making larger contributions than you are so perhaps that's a factor?

    Pm me and I'll give you my brokers details. However they are all selling the same products so I' m sure any broker selling Zurich products will give you the same deal.


  • Options
    #8
    thomasm
    Registered Users Posts: 1,503 ✭✭✭thomasm


    try this
    www.davyselect.ie


  • Options
    #9
    Browney7
    Registered Users Posts: 3,100 ✭✭✭Browney7


    digzy wrote: »
    You've mentioned the 2 most important things in your post. Allocation rate and mgmt fee.

    Just as a guide, boi offered 100% allocation .75% mgmt fee.
    Zurich offered 101% allocation and 1% mgmt charge.
    Professional advice from 2 different accountants advised me to pick the Zurich offer even though my uneducated opinion was that boi was a better offer.
    Now I'm making larger contributions than you are so perhaps that's a factor?

    Pm me and I'll give you my brokers details. However they are all selling the same products so I' m sure any broker selling Zurich products will give you the same deal.

    What fund did your advisor recommend? How did he/she justify Zurich over Boi? Boi would probably have very similar funds and to be honest .25% per anuum extra in charges will eat into your return if you have an anyway half decent term to retirement. Does the Zurich management fee drop after a stage?


  • Options
    #10
    Browney7
    Registered Users Posts: 3,100 ✭✭✭Browney7


    the_syco wrote: »
    No broker. It's a PSRA. Not really investing any funds, just putting money into a pension. One of the main reasons for no investing, was that the pension was set up only a few months after sh|t hit the fan, and pensions were devalued due to invested interests going bust (from what I read at the time), so when asked, I said not to invest any of the money into shares, etc.

    Checked the latest letter from AIB, and it says the PRSA provider is ARK Life Assurance Co Ltd.

    It seems as well as the 5%, they also take a 1% each year for management fees.

    I take it so your PRSA is just sitting in cash? Although very secure you're likely to be making a loss after charges each year as money market funds are making tiny returns. If your very risk averse you may be happy with this but in the long run equities,property and bonds should outperform cash. I'd imagine your existing arrangement still has some connection with Aviva as Ark life was connected with Aviva until last year


Advertisement