If you have an existing Executive Pension Plan (EPP), no matter whether you’re a director, executive employee, or a professional contractor, you are most likely paying too much under a host of plan-related charges. Here is your opportunity to switch to a single-cost low-cost Master Trust -Executive Pension Plan, combined with the ability to create a flexible bespoke underlying pension fund portfolio.
Don’t feel surprised as most people focus on past investment performance, as the biggest influencer when choosing their Executive Pension Plan provider, but don’t pay enough attention to the underlying charges, nor truly appreciate how these costs are going to affect their eventual retirement pot.
The simple fact is that these charges (especially the total AMC), will have a substantial impact on what your plan is eventually worth. Remember, private pensions make huge sense, particularly due to their great and numerous tax breaks, but paying a fair level of charges, and getting the right investment advice makes them a whole lot more effective.
Executive Pension – Typical Market Plan Charges
The charges that apply to all existing EPPs include:
1. Annual management charge circa: 1.50% PA
2. Contribution charge: typically: 3%
3. Monthly policy fee: circa €4.50 PM
4. Fund switching fee: circa €25.00
The impact of charges:
The most important and impactful charge on your pension plan is the AMC, and whereas the contribution charge is levied against the monies as they go in, the AMC is levied against your ongoing fund value as it builds over your time to retirement. The monthly policy fee will differ among providers and although less important and relevant to the other core charges, this and fund switching charges, can entirely be avoided.
Low-Cost – Executive Pension Plan
For existing Executive Pension Plan holders (subject to eligibility) seeking to reduce charges whilst at the same time moving to a Master Trust solution, we provide exceptional value aligned to a choice of top-performing domestic and international fund managers.
We can offer the following (subject to eligibility):
• From 1.00% to 1.25% PA inclusive of our broker charge
• No contribution charges, meaning 100% allocation
• No monthly policy fee
• No fund-switching fees
Free Switching Consultation
Prior to contact, please note the following information will be sought:
1. Your name, age, and contact number.
2. Proof of existing retirement benefits.
3. Current value of existing retirement benefits.
• Minimum monthly contribution of €500.00 PM
• Maximum age of entry 55
IORP II – Requirement
If your existing Executive Pension Plan (EPP) was set up prior to 22 April 2021, you will eventually have to transfer it to a Master Trust version, or a PRSA at some stage before 22 April 2026.