private pension

krudmonkey

My workplace doesn't operate a pension so looking to go it alone.

Just spoke to Standard Life on the phone who advised that I get a Financial Advisor to talk through the products and do the paperwork. I asked them about the likely fees and theres ~1% per annum for the FA and 1% from Standard Life. 2% isn't a lot but will add up over time.

Are you better off just investing in index/ETFs yourself?

or does the tax benefit to pension outweigh the 2% charges?

Sorry if these are stupid questions, I'm not very financially literate.

Thanks

Geuze

No bother.

Pension fees are high in Ireland, but it is possible to reduce them if you use a discount broker.

You should be able to get a PRSA with no contribution charge and max 1% AMC.

So the FA fee would be zero.

Geuze

One discount broker is www.labrokers.ie, to whom I have no connection other than being a customer.

bmwguy

I have 0.5% annual fund charge on mine. Few other charges on setup but when you are talking about a big pension pot the annual percentage is key. Thousands in the difference every year once the fund gets bigger. I switched it from a 1.5% fund and like for like I think it's about 50k less in charges over the life of it.

chillit

bmwguy wrote: »

I have 0.5% annual fund charge on mine. Few other charges on setup but when you are talking about a big pension pot the annual percentage is key. Thousands in the difference every year once the fund gets bigger. I switched it from a 1.5% fund and like for like I think it's about 50k less in charges over the life of it.

hi
could I ask what provider you are with that is offering the 0.5% annual management fee ?

most providers I am looking at are around 1% with the best being 0.75% from Zurich.

Thanks in advance

Henry Ford III

Cheap can be nasty too, and a mistake despite the very best of intentions can be horribly expensive.

Your pension should be one of your most valuable assets and a cheap DIY solution is much more likely be flawed than otherwise. Would you self diagnose health issues to avoid a doctors fee?

Get proper advice OP, and be prepared to pay for it too.

antix80

Henry Ford III wrote: »

Get proper advice OP, and be prepared to pay for it too.

Here's good advice.. the higher the fees, the less left over for retirement.

Henry Ford III

antix80 wrote: »

Here's good advice.. the higher the fees, the less left over for retirement.

Sometimes you just scratch your head and wonder about people.

Good advice will be worth much more than it costs.