Self-managed or self-invested pension plans (SIPPs) are pension plans that include an insurance company wrapper on the product side and an appointed stockbroker on the trading side. Most importantly, they are only suited to experienced investors, that are also high-net-worth individuals, given the minimum contribution and trading levels.
In terms of investment choice, SIPPs do not allow directly purchased property, but you can hold up to a maximum of 50% of your overall property in property funds at any one time. Other asset options include Mutual Funds, publicly traded Shares, Bonds, ETFs, Currencies, and Structured Products.
SIPP Charges – Suited to High-net Worth Individuals
The charges on SIPPs are made up of advisory set-up fees, an annual management charge (levied against your total pension plan portfolio), a possible allocation charge, and a policy fee, together with related trading charges.
1. Set up and Administration Fees: These fees are charged by SIPP providers for establishing and maintaining your pension account. They typically cover tasks such as setting up the SIPP, handling paperwork, and providing ongoing administrative support. Our clients pay a once-off setup fee amounting to €5K and an annual administration charge of €500.00.
2. Annual management charges (AMCs): AMCs are recurring fees charged by SIPP providers for managing your pension investments. These charges are expressed as a percentage of the value of your pension fund and cover portfolio management, and regular reporting. Our clients pay an AMC totaling 0.40% PA, with a minimum regular contribution requirement of €2,500 PM.
3. Contribution Charges: These charges, also known as allocation charges, can be imposed by certain financial advisors seeking to take a renewal commission and can amount to up to 5% of the amount invested. We grant 100% allocation, so there are no allocation charges.
4. Dealing Fees: Dealing fees are incurred when you buy or sell investments within your SIPP. These charges can vary depending on the type of investment and the SIPP provider, ranging from fixed fees per transaction to a percentage of the investment amount. For our clients, execution-only trading charges amount to 0.25% of the traded amount.
5. Policy Fee: There is no policy fee.
Notes:
- To begin trading through the appointed stockbroker, on an execution-only basis, there is a minimum trade of 50K.
- The minimum individual trade on an Advisory or Discretionary basis is 250K.
- Typically 2% of your total portfolio must be maintained in cash.
- There is no charge for the transfer of existing pension funds into a SIPP.
Insured Pensions – Master Trust EPPs and PRSAs – Best suited to Executives & Business Owners
Traditional insured pension plans, offer access to a choice of different fund managers and funds under either a Master-Trust – Executive Pension Plan or a PRSA, with the Non-standard PRSAs now proving the preferred choice for most.
Non-standard PRSA Charges
The charges on Non-standard PRSAs (which offer broader fund choice than standard PRSAs) are made up of a combined annual management charge (levied against your total pension plan portfolio) and an allocation charge may also be applicable.
1. Annual Advisor Support Charges: There is no set-up charge for a PRSA and the advisor annual support charge is built on top of the FMC. Our clients pay a flat broker support charge of 0.25% per annum.
2. Annual fund management charges: FMCs are recurring fees charged by PRSA provider fund managers for managing your pension investments. These charges are expressed as a percentage of the value of your pension fund and cover portfolio management, and regular reporting. Our clients pay an FMC totaling 0.75% per annum, with a minimum contribution requirement of €500 PM.
3. Contribution Charges: These charges, also known as allocation charges, can be imposed by certain financial advisors seeking to take a renewal commission and can amount to up to 5% of the amount invested. We grant 100% allocation, meaning that there are no allocation charges.
4. Dealing Fees: There are no dealing charges.
5. Policy Fee: There is no policy fee.
Speak with a Financial Advisor
To arrange your free no no-obligation consultation by phone, video conference, or in-person contact us today. Contact: Ken O’Gorman – Director – QFA, CB, SIA – Pension Specialist – One Quote Financial Brokers on: 01 845 0049 or email: ken@onequote.ie
Or enquire online and give us a quick outline of how we can help.
