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Our strong recommendation to participants and the public in general is to look carefully at all the charges being levied by their AVC provider. As a minimum everybody taking out a financial product including pensions should seek a written breakdown from their provider of all charges pertaining to the product. Only then can you make a considered judgement on the value and merit of what is on offer.
On our mid-career and retirement planning seminars we give a comprehensive set of handouts to participants on evaluating AVC's and their charges. We strongly recommend the following in relation to charges by AVC providers.
DO NOT PAY A SET UP CHARGE (there are good providers who do not charge this fee)
DO NOT PAY AN ADJUSTMENT CHARGE (that is if you decide to make a change some providers charge you for this)
DO NOT PAY A PAYROLL DEDUCTION FEE (this is a charge for making life convenient for the AVC provider)
YOU WILL NORMALLY PAY A STANDARD 5% CHARGE ON YOUR CONTRIBUTIONS
YOU WILL PAY A MANAGEMENT FEE WE FEEL 1% IS SUFFICIENT.
For more information on what we consider to be acceptable charges you will get a comprehensive overview on any of our seminars.
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