Pension Fees

capailldubh

Hi Folks

I hit 65 recently and want to retire from my small business.

I had an SSAP with an apartment since 2014.

I recently sold this so now the entire pension pot is in cash and I am looking at my options.

I just got a fees invoice showing IORP II fee of €1000 and .5% on the cash plus vat.

I am wondering if this is a good rate or if I should move the pension elsewhere as it is no longer an SSAP.

I might leave the pot in cash for now and just draw the 4% annually to minimize risk in the current climate.

If the cash is just sitting in a bank, would that reduce the fees?

As a hands on working business person, I am getting it hard to see much value from a fee that will be nearly €4500.00 inc vat.

Henry Ford III

Take some independent advice. Consult a QFA.

capailldubh

https://www.boards.ie/discussion/comment/119861663#Comment_119861663

Thanks Henry.

I have a QFA but I am looking for some independent views.

Basically, looking to see if I am getting value for my €4.5k or are there better deals out there.

Henry Ford III

https://www.boards.ie/discussion/comment/119861799#Comment_119861799

That's exactly what a QFA is supposed to do!

capailldubh

So if the one I have is an agent for the pension company, could he not be a little biased as to where my fund was?

What is wrong with comparing notes with others in the same situation on a public forum?

Is that not what a forum is all about..

Jim2007

https://www.boards.ie/discussion/comment/119862292#Comment_119862292

So which are you dealing with not an independent advisor who holds a QFA or an agent/employee of a pension company? There is a very big difference.

As for comparing notes with others.... group think in finance can be a very expensive thing. And we have a lot of group thing in finance.

Henry Ford III

https://www.boards.ie/discussion/comment/119862292#Comment_119862292

If he/she is a tied agent (for one insurer only) they can't claim be independent.

If not they should doing this work for you, and present you with a comparison of all product providers.

If you aren't happy at that point seek a second opinion.

p.s. In general SSAP costs are high.

capailldubh

Seeing that the apartment that was in the SSAP has been sold

and the total pot is now in cash, surely now I can avail of better rates for my pension.

Sorry if I am in the wrong forum.

Henry Ford III

https://www.boards.ie/discussion/comment/119865080#Comment_119865080

Of course you can.

@capailldubh

@capailldubh

Those fees are good for a SSAP.

If you're retiring you'll be moving from a pre to post retirement product (ARF) so the IORP fee won't apply to that and you should be researching the costs of ARFs.

It's likely that you'll still pay circa 0.5% pa on your ARF.

capailldubh

https://www.boards.ie/discussion/comment/119872771#Comment_119872771

Thanks Gerard for that info.

I will check to see if the IORP fee should have been charged seeing the apartment was sold months ago.

I cam obviously shop around but as you say .5% seems to be standard.