Irish Pension Information

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Pension charges are normally hidden in plain sight. If you look for them it is easy to find out how much you are being charged by your provider.

 

If you don’t look for them you may have no idea how much you are being charged. This is because your pension charges are taken directly from your fund which means you don’t receive a bill as you would for other things such as your electricity.

 

As you don’t have to make a conscious effort to pay your pension charges its easy for these to slip under your radar. When you combine your pension charges with your pension performance you can be making a loss even when the performance of your fund is positive.

Contribution Charge

This is a charge applied to your pension when you put money in  or “contribute” to your pension fund. A contribution charge is normally a percentage.

In some instances your contribution charge may change depending on how much you put into your pension. Normally the more you are putting in the less your contribution charge will be.

Allocation Rate

An allocation rate charge is the same as a contribution charge it is just expressed in a different way. For instance your fund could have a 97% allocation rate. Each time funds are allocated to your pension only 97% of those funds are put in. The rest is taken as an allocation charge.

You may also have a positive allocation rate. For example an allocation rate of 103% In this instance for every €100 you put in your pension provider puts €103 into your pension. A positive allocation rate over 100% is  a bonus each time you put money into your pension.

Non Allocation Period

A non allocation period is a period of time for example 3 months where the full amount you put into your pension is taken as a charge.

Next we are going to take a look at ongoing pension charges. We do offer a lot of information so if you would rather skip ahead with less information you can go to our Access Pension from 50 overview instead.

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