In a potentially low return future – costs are more important than ever

Many forecasters believe that future returns will be lower than the recent experience. See here for an example https://www.blackrock.com/investing/insights/blackrock-investment-institute/outlook
In such an environment manging pension costs becomes even more important. We have seen leading pension providers recommending solutions with cost structures in excess of 2% per annum
Let’s re look at our previous example ; Let’s assume you have a current fund of €500,000, are making €2k per month pension contributions ( between employee and employer) and intend to retire in 15 years’ time. If we work off a 4% gross return before charges – consider the following;
- Option 1 2.25 % annualised charges – pension grows to €1.06mio
- Option 2 1.25% annualised charges – pension grows to €1.19mio
- Option 3 0.5% annualised charges – pension grows to €1.3mio

For those with pension assets in excess of €250k our firm provides a free cost audit on current pension or investment cost structures. Relative and absolute Risk/Return analysis is also provided. http://wp.impartial.ie/contact-us/