Pension Charges Report Looks At Impact Of Hidden Charges

Author:Mr Paul Glenfield, Brian Buggy, John Dunne and Bryan Dunne
Profession:Matheson
 
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The Report on Pension Charges in Ireland 2012 was compiled by the Department of Social Protection, with assistance from the Pensions Board and other parties. The report looks at the impact of disclosed and hidden charges on retirement savings and it also assesses whether charges are reasonable and transparent in how funds are being managed. The findings of the report were illustrated by way of the following example: An individual aged 35, saves €250 per month towards a pension for 30 years.  The report estimates that contributions at this level will create a retirement fund of about €200,000, which in return would pay a pension of about €10,000 a year.  Where an average charge of 2.18% per annum is then applied to the fund, the final fund is reduced by 31% (€62,000).  This results in a significantly lower pension of €6,900 per annum. Minister for Social Protection Joan Burton has commented that many schemes and individuals are clearly paying more than...

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