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Private Pension 101

  • 07-09-2020 3:47pm
    #1
    bbehan202
    Closed Accounts Posts: 66 ✭✭


    1. I have 3 private pensions all put together with Irish Life (2 inactive managed in funds provided by company, 1 active)

    2. I am 35

    3. There is a good chunk of money in there

    4. Where can I get good reading material i.e. a "Pensions for Dummies" style guide on finding out:

    A: What I can do now with moving my pension i.e. can I move them out of Irish Life to elsewhere

    B: What my options will be upon retirement? i.e. how do I cash them out - how do I split out etc.

    I find it very hard to get good concrete information on this.


Comments

  • #2
    Mort5000
    Registered Users, Registered Users 2 Posts: 419 ✭✭Mort5000


    These might help:

    Citizen's Information: Pensions

    CCPC: Pensions


  • #3
    Darc19
    Registered Users, Registered Users 2 Posts: 3,817 ✭✭✭Darc19


    Generally if you move them out you get the bid price which can be 5% below the ask price.

    If you start on a new plan you might find it's front loaded with commissions.

    Whilst many will advise "independent advisors" always ask for details of all costs, commissions and restrictions.
    If going the advisor route look for someone who will charge you a fee rather than take commissions.

    If you are self employed / company director, look at a SSAP - it is very tax efficient


  • #4
    bbehan202
    Closed Accounts Posts: 66 ✭✭bbehan202


    Cheers for the advice. Is there any book I can buy on the topic to read up on? Nothing on amazon


  • #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,738 Mod ✭✭✭✭Henry Ford III


    Darc19 wrote: »
    Generally if you move them out you get the bid price which can be 5% below the ask price.

    If you start on a new plan you might find it's front loaded with commissions.

    Whilst many will advise "independent advisors" always ask for details of all costs, commissions and restrictions.
    If going the advisor route look for someone who will charge you a fee rather than take commissions.

    If you are self employed / company director, look at a SSAP - it is very tax efficient

    That's quite misleading.

    Bid/offer spreads went out of style many years ago. Early encashment/switching charges may apply normally for up to 5 years. After that there's no exit charge.

    Commission disclosure is mandatory. If you don't like the size of the commission don't sign up or use the cooling off period.

    Fee vs commission is a big subject. On smaller ticket business you'd often be better off to go down the commission route.

    SSAP's have the same tax reliefs as insured pensions. They do tend to have very hefty fees though, and these are payable every year regardless of transactions.


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