PRSA contribution charges

[duke7779]

I'm in the process of setting up a PRSA with a local 'financial consultant '. At the outset the fees were outlined to me as follows (and I copy & paste from his email)...

* No Policy Fee.

* No Exit Fee.

* There is a total Annual Management Charge (AMC) of 1.5% for standard funds (1% to the Insurance Company & 0.5% to XXX Financial Services) . Normally as the fund grows this will be reviewed.

I wasn't happy with the 1.5% charge, so he suggested a passive fund with a 1% charge which I agreed to.

Today I received the Preliminary Disclosure Certificate and noticed in the charges section...

Contribution charges

Regular contributions: The contribution charge on regular PRSA contributions at the start date is 2% of the contribution. The contribution charge on future regular PRSA contributions is 2%.

Single contributions: The contribution charge on future single PRSA contributions is 2%

Fund related charge

The annual fund related charge on units purchased by regular contributions on this policy is 1.00%.

So does this mean there's only an allocation rate of 98%? Is this par for the course? This was never mentioned in our initial conversation. Does the Davy self directed PRSA have 100% allocation and 1% AMC?

Reason I decided to go with this guy is because he handles pensions for where I work and my employer is contributing (10% of my contribution i.e. a whopping 3%). I'm beginning to think f**k this and go with Davy... Not worth the poxy 3%?

 

[resjudicata]

@duke7779 Yeah I pay 4% on contributions for my Irish Life pension and it's awful. I end up giving over 30 euro a month to Irish Life which never gets invested and has no chance to grow. Incredible growth in the stock market over the past 7 years, I know the past year has been bad, but my portfolio has only grown 15%. If you can go to Davy that's where I would go.

 

[duke7779]

@resjudicata https://www.labrokers.ie/prsas-ireland-personal-retirement-savings-account-pension-plan/

These guys seem to charge 0% on contributions i.e. 100% allocation & have a 1% annual charge - haven't used them, so can't confirm. Worth checking what your annual charge is. Lowest I've come across is 0.75%.

 

[napoleon215]

@duke7779 Annual charge is 1%

 

[hendrix]

@resjudicata You've an allocation rate for 96%.

I'd speak to a broker to see if you can get another PRSA with higher allocation rate.

 

[duke7779]

@hendrix Yeah, that's bad...

 

[ecsid]

@duke7779 Find an 'execution only' financial adviser when setting up for PRSA. Contribution fees are straight theft.

 

[jullietwillor]

@duke7779 Davy is 0.75% AMC and 100% allocation.