Pension Fund Fees

Fees make up a large part of what happens with your pension fund. At DW Financial, we regularly meet clients who are paying well above the average on pension fund fees. This has a negative effect on their future fund value.

Here is a list of some of the fees associated with pension policies:

  • AMC – An AMC or Annual Management Charge is a fund-based charge, charged to policy holders by the life company. The fee is based on a percentage of the fund value.
  • Allocation – This is the percentage of your contribution that is used to buy units in your chosen fund.
  • Policy Fee – a policy fee is a fee charged by the life company.

At DW Financial we will find the best fee structure available to match with your desired fund. Below is an example of just how much fees can impact your funds future potential value.

We recently met a 37-year-old woman who was contributing towards her retirement. She had been saving €500 a month in a pension fund for the last three years and had accumulated €26,104 in her pension fund. Before our review, her pension had the following fees:

AMC 1.65%
Allocation  97%
Policy Fee €4.92 per month

Based on these fees, continually paying €500 per month until age 65 with annual return of 4% this fund had the potential of returning €283,637.

After our review, we were were able to offer the following fee structure by switching provider:

AMC 1%
Allocation  100%
Policy Fee €0 per month

Based on these fees, continually paying €500 per month until age 65 with an annual return of 4% this fund had the potential of returning €329,288.
By switching this client to a better fee structure, she was saving €45,651 in fees!

Book your free pension consultation today!

Warning: Past performance is not a reliable guide to future performance.

Warning: Benefits may be affected by changes in currency exchange rates.

Warning: The value of your investment may go down as well as up.

Warning: If you invest in these products you may lose some or all of the money you invest.