Pension - Transfer or leave it where it is?

guile4582

i really dont understand pensions. i was advised no harm leaving it where it is. should i reasess this? will i have issues in future accessing?

ANXIOUS

guile4582 wrote: »

i really dont understand pensions. i was advised no harm leaving it where it is. should i reasess this? will i have issues in future accessing?

In the vast majority of cases ie 99.9999% of pension retirements from a DC Ops you will have no problems.

Henry Ford III

ANXIOUS wrote: »

In the vast majority of cases ie 99.9999% of pension retirements from a DC Ops you will have no problems.

What do you base that on exactly?

ANXIOUS

Henry Ford III wrote: »

What do you base that on exactly?

In an overall context what would you put the percentage at?

Henry Ford III

ANXIOUS wrote: »

In an overall context what would you put the percentage at?

Answer my question first and I will.

ANXIOUS

My experience comes from being a trustee of a numerous pension schemes and having been involved in hundreds of retirements and never seeing a trustee refuse one in a DC scheme.

Unfortunately that doenst fit the narrative of people in your industry who recommend transferring your benefits for 'flexibility' which in most instances means an increase in amc and a commission for you.

The J Stands for Jay

ANXIOUS wrote: »

My experience comes from being a trustee of a numerous pension schemes and having been involved in hundreds of retirements and never seeing a trustee refuse one in a DC scheme.

Unfortunately that doenst fit the narrative of people in your industry who recommend transferring your benefits for 'flexibility' which in most instances means an increase in amc and a commission for you.

And for the 0.0000001% a quick email to the Pensions Ombudsman does the trick to get things moving.

Henry Ford III

If you were a trustee (I have doubts on your claims btw) you'd know that a financial services industry is absolutely necessary for schemes to be initiated and serviced, and that has to be paid for.

Regarding the prb thing it is the correct advice. Accessing benefits is one issue but investment control is more important. Any reasonable Trustee should know and highlight that. Costs are a necessary side effect but as a Trustee you'll know it's a competitive market, and that any fee or commission has to be agreed and disclosed.

Merowig

As previously stated most Occupational Pensions are offering several different investment opportunities/funds.


Accessing is in most cases not an issue - so I don't see it as a valid argument for a PRB.
The average Joe Doe would be overwhelmed with accessing ~200 different funds and in most cases what is offered by the occupational pensions funds is good enough.
I didn't come accross anything which says that PRBs are performing better than Occupational Pensions - including fees.

ANXIOUS

Henry Ford III wrote: »

If you were a trustee (I have doubts on your claims btw) you'd know that a financial services industry is absolutely necessary for schemes to be initiated and serviced, and that has to be paid for.

Regarding the prb thing it is the correct advice. Accessing benefits is one issue but investment control is more important. Any reasonable Trustee should know and highlight that. Costs are a necessary side effect but as a Trustee you'll know it's a competitive market, and that any fee or commission has to be agreed and disclosed.

Lol complete garbage, what has anything you've said in the above got to do with the question.

What percentage would you give on a trustee declining an early retirement request for a DC scheme?

No straight answers, as per usual.

While amcs and fees have to be laid out there is no need to highlight the amcs of the scheme they are leaving.

Henry Ford III

Merowig wrote: »

As previously stated most Occupational Pensions are offering several different investment opportunities/funds.


Accessing is in most cases not an issue - so I don't see it as a valid argument for a PRB.
The average Joe Doe would be overwhelmed with accessing ~200 different funds and in most cases what is offered by the occupational pensions funds is good enough.
I didn't come accross anything which says that PRBs are performing better than Occupational Pensions - including fees.

1/. You won't know about a trustees intentions or inclinations unless you are a mindreader. You won't know the history between employer and employee either which can be a major factor.

2/. The average Joe Doe needs advice. Thanks for the backhanded endorsement.

3/. That's a strawman.

It's actually slightly comical that you are so fixated by the pursuit of the lowest cost option that you can't see the wood from the trees.

I'll leave it at that I think.

Henry Ford III

ANXIOUS wrote: »

Lol complete garbage, what has anything you've said in the above got to do with the question.

What percentage would you give on a trustee declining an early retirement request for a DC scheme?

No straight answers, as per usual.

While amcs and fees have to be laid out there is no need to highlight the amcs of the scheme they are leaving.

If you had any knowledge of the subject you'd understand the opposite is the case. There's clear logic to what I've suggested.

I don't deal with every retirement claim so cannot answer the question. Seeing as you don't either nor can you. What I can say is I've encountered it on several early retirement claims. I've also seen employers declining to provide immediate vested rights.

Your last paragraph has no bearing to my point so it's impossible to progress it.

If you are a pension scheme Trustee (unlikely imho) your training needs a considerable boost.

This dialogue is at an end. I've work to do.

Merowig

Henry Ford III wrote: »

1/. You won't know about a trustees intentions or inclinations unless you are a mindreader. You won't know the history between employer and employee either which can be a major factor.

It sounds that you assume that it is normal that the relationship between trustee / employer and employees is completely broken.
This is not normally the case.

2/. The average Joe Doe needs advice. Thanks for the backhanded endorsement.

Yes so that financial advisors can milk Joe Doe.
Many financial advisors are not advisors but just simply salesmen.
For Joe Doe it is enough going for a low cost option and normally for a passive fund which just tracks the market.
For Joe Doe there is no value added by involving a financial advisor.
You endorse yourself. That's all.

3/. That's a strawman.

No you and many of your colleagues are strawmen / snakes oil salesmen. You can get the same PRSA with zero contribution charges or with 5% contribution charge if going through a Financial Advisor.

There is a good reason the UK banned commisions for financial advisors.

Henry Ford III

Merowig wrote: »

There is a good reason the UK banned commisions for financial advisors.

I'll ignore a good bit of that as it's nonsense. Your blinkers are on way too tight

Commission seem to be a dirty word for you particularly. It's similar to markup for other businesses without which you'd probably have no job. Are you familiar with the mandatory disclosure requirements? If you don't place any value on the advice of an advisor (some are better than others don't forget) then fair enough, but a lot of people do and I think the advice given by the good ones and the cost of it is reasonable at least. The regulatory requirements are onerous and are aimed squarely at consumer protection.

Best we can do is agree to differ on this element I suppose.

p.s. UK IFA's still get commission on various financial products (and generally at higher rates than here in Ireland too).

murphaph

My old OPS from Ireland has very low fees (company covers big chunk of fees) and has done well for itself. I could however at the click of a mouse change the investment mix but I do not feel confident I'd beat the returns I've been getting to be honest, but I can if I want to.

It definitely makes sense for lots of people to leave their pension where it is.

I see absolutely no reason to move my pension anywhere. I know in theory I could move it to Malta (I'm non resident) to avoid the Irish pension levy but this seems super risky to me.

Merowig

The pension levy in Ireland is gone

murphaph

Merowig wrote: »

The pension levy in Ireland is gone

Ah well then there's really no point in moving it anywhere. Somehow I missed that (rather important) bit of news. That's brightened up my day Merowig