Pension Commission

Santa Claus

So I've always had pension plans organised by my employers up until now but with current employer I have to arrange my own.
One thing that I noticed is that for the first 2 years commission is 50% of contributions and then the annual management charge is 0.5%

Is this reasonable for Occupational Pensions?

lawred2

Santa Claus wrote: »

So I've always had pension plans organised by my employers up until now but with current employer I have to arrange my own.
One thing that I noticed is that for the first 2 years commission is 50% of contributions and then the annual management charge is 0.5%

Is this reasonable for Occupational Pensions?

half your contribution is used to pay commission? that can't be right

BrokenArrows

Santa Claus wrote: »

So I've always had pension plans organised by my employers up until now but with current employer I have to arrange my own.
One thing that I noticed is that for the first 2 years commission is 50% of contributions and then the annual management charge is 0.5%

Is this reasonable for Occupational Pensions?

If that 50% figure seems very wrong. Do you have a link to the pension plan?

Santa Claus

to clarify the pension provider (Acorn Life) are saying that for the first 2 years of my pension 50% of contributions will be taken and then after that they have the lowest charges in the market of 0.5% per year.

50% of 24 months contributions seemed high to me as it effectively negates the contribution my employer will be making.

coylemj

Santa Claus wrote: »

to clarify the pension provider (Acorn Life) are saying that for the first 2 years of my pension 50% of contributions will be taken and then after that they have the lowest charges in the market of 0.5% per year.

After 24 months you can bet that the sales guy will be back with some new angle which will involve fund switching with more exorbitant charges. Any time I hear of that company, it's their sales staff churning existing policies to get yet more commission, they treat their customers like cash cows.

You need to pay someone for independent advice and steer clear of the high-commission cowboys.

Fanny Wank

Santa Claus wrote: »

after that they have the lowest charges in the market of 0.5% per year.

Really?

What type of fund? My employer's scheme has a 0.25% charge on my fund (but some funds are higher depending on asset mix)

I'd ask for that in writing with proof tbh on what the basis is.

Fleecer84

Santa Claus wrote: »

So I've always had pension plans organised by my employers up until now but with current employer I have to arrange my own.
One thing that I noticed is that for the first 2 years commission is 50% of contributions and then the annual management charge is 0.5%

Is this reasonable for Occupational Pensions?

No that’s not reasonable. Do not, do not use them. Find a local broker tell him/her you are shopping around and are very keen to keep charges down. The company you mentioned are very “different” in their “charging” methods versus Zurich Aviva etc

Mumm_ra

50% of contributions for what exactly?

Mumm_ra

Surely .5%

Fleecer84

Mumm_ra wrote: »

Surely .5%

.5% is excellent but not the 50% initial contribution charge. Depending on figures you could expect maybe 0%contribution and 1% management charge.

Henry Ford III

Acorn Life charge more than an angry bull. Get better advice and value elsewhere.

thebackbar

coylemj wrote: »

After 24 months you can bet that the sales guy will be back with some new angle which will involve fund switching with more exorbitant charges. Any time I hear of that company, it's their sales staff churning existing policies to get yet more commission, they treat their customers like cash cows.

You need to pay someone for independent advice and steer clear of the high-commission cowboys.

I fully agree with this statement, ie the need for independent advice, however outside of Dublin I have found it difficult to get independent advice, and i was fully willing/expecting to pay for it. Is there a list of independent pension advisers ?

What pension providers should I be looking at ? I always think its worth having some research done myself before engaging with a consultant.

Fleecer84

Where are you based?

thebackbar wrote: »

I fully agree with this statement, ie the need for independent advice, however outside of Dublin I have found it difficult to get independent advice, and i was fully willing/expecting to pay for it. Is there a list of independent pension advisers ?

What pension providers should I be looking at ? I always think its worth having some research done myself before engaging with a consultant.

thebackbar

Fleecer84 wrote: »

Where are you based?

Galway

daheff

Does your employer get a kickback from these commissions?

Will your employer contribute using a different provider?

Fleecer84

thebackbar wrote: »

Galway

Not sure of Galway brokers I know a couple of good lads up there but they are tied to Irish life so deals aren’t great. I’ve my stuff with campion insurance there’s a lad in Athlone and mullingar for them he’s sound and up front with all.

Henry Ford III

Plenty of decent brokers in Galway. Have a look at the Central Bank site for the best qualified.

thebackbar

Henry Ford III wrote: »

Plenty of decent brokers in Galway. Have a look at the Central Bank site for the best qualified.

Really ? I'm trying to find a link to brokers in Galway who are independent. I cant find this information on the central banks website, can you point me in the direction of a link please ?

Fleecer84

thebackbar wrote: »

Really ? I'm trying to find a link to brokers in Galway who are independent. I cant find this information on the central banks website, can you point me in the direction of a link please ?

90% of brokers are independent doesn’t mean they aren’t greedy.
Use a broker say you’ve a preference for Zurich/Aviva ask for a 100% allocation and a 1% AMC. Go to brokersireland.ie never mind central bank.