Zurich Fees and Charges for Personal Pension
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- Zurich Fees and Charges for Personal Pension
Below is a summary and brief explanation of all the main fees and charges associated with the Zurich - Personal Pension.
The three main fees and charges for all plans are as follows:
1. Set up Fees
A set-up fee is a small initial charge applied by a company when opening a new plan or policy.
Zero set-up fees are applied by both Zurich and Money Maximising Advisors.
2. Allocation Rate
An allocation rate is the percentage of your funds that are actually transferred into your plan. For example, an allocation rate of 95% means that €95 out of every €100 you contribute is actually received into your policy. It is always advisable to have a 100% allocation rate whenever possible.
A 100% allocation rate can have a significantly positive impact on your fund over a 10-20 year period, particularly when added to any compound interest returns over the period of your plan.
- For your contributions, Zurich applies an allocation rate of 100%, meaning that no contribution charge is applied and all your funds are invested in your plan.
3. Annual Management Charge (AMC)
This is a charge that all providers apply to your fund annually. It is charged to cover the cost of managing your investment, ensuring that your returns are maximised and that the fund can respond to market conditions. Annual management charges typically range from 1–2%.
Zurich applies a very competitive annual management charge of 1.00% across both standard and non-standard fund options.
Across all Personal pension options:
- The minimum investment is €20,000 with minimum monthly premium of €150.
- No policy fees apply.
- You can make up to 4 free fund switches per year.
For example: if you are currently invested in a low-risk fund but decide you want to aim for higher growth, you can switch your money into a medium or high-risk fund.
Below is a breakdown of all the above-mentioned fees and charges in table format
Investment Example
If you decide to invest a €100,000 lump sum into the Zurich Personal Pension, you can divide this amount across several eligible pension funds. For example, you might allocate €40,000 to the Prisma Funds range, €30,000 to the Global Corporate Bond fund, and €30,000 to the gold fund, while also maintaining monthly premium (minimum €150). Your allocation rate, annual management charge and any applicable fees will apply to each portion based on the specific pension funds you select.