The simplest pension in Ireland

A simple investment strategy, with a leading Irish pensions provider, at a clear, great value price – what’s not to like?

Keep it simple is perhaps the best rule of finance.

Pensions in Ireland have a reputation for flouting the rule.  But it doesn’t have to be that way. Moneycube has put together a super-simple pension plan that cuts through the complication.

If you’re thinking of switching your pension to a simpler, better value option, this might be the answer. And if you have been putting off making a start, read on to discover a way to clarity and control over your pension plan.

It boils down to getting three basics right…

1. A simple investment strategy

The approach here is to buy a little bit of everything.  Everything? Well, almost everything.

Legal & General’s World Equity Index fund aims to track the MSCI World Index.  This index covers around 85% of the value of listed companies in 23 developed countries, worldwide.

Why does that matter? Several reasons.

Firstly, it’s simple.

The fund isn’t charging you a premium to execute some unproven strategy.  It’s simply following the ups and downs of the market (aka passive investing).

Because they are the biggest companies in the world, its top five investments are Microsoft, Apple, Amazon, Alphabet (previously known as Google), and Facebook.  Moving on down the list and you’ll find other global names like Johnson & Johnson, Nestlé and Visa.

The fund is run by Legal & General Investment Management, a major UK asset manager with over a trillion (yes, trillion) pounds under management.

Secondly, performance counts.

The developed world’s stock markets have a long track record of strong performance.  The MSCI World Index produced annualised returns of 10.6% over the 10 years to 31 May 2019, for example.

Thirdly, it’s highly diversified.

The fund holds shares in more than 1,600 companies.  That spreads your risk over many different opportunities.  Here’s a split of the the investments by industry sector (as at 31 May 2019).

Moneycube’s view: for regular pension investors, at an early- to mid-stage of their career, company shares, should be the core of your pension.  It means your savings have scope for growth – as well as time to recover from any short-term setbacks.  This L&G fund is a strong contender to do that job.

2. A leading pension provider

The second piece of our simple strategy is a pension provider which can provider the tax benefits, monthly direct debits, and real-time information on your pension online.

Moneycube customers can access the L&G World Equity Index fund using Aviva, one of Ireland’s largest pension providers.

3. A clear price

Lastly, there’s the cost. Again, this is an area where pensions in Ireland have often fallen short, with savers unclear on what they’re paying and why.  Again, we’ve kept it simple.  And we’ve worked hard to make it transparent and great value to pension savers.

Using Moneycube as your pensions advisor, you could set up this pension for an annual cost of 1.25% of the value of the fund.  You’d also receive a 100% “allocation rate”.  In plain English, that means that all of the money you put into your pension is invested.

This all-in fee covers the cost of our advice and work to get your pension set up, the cost of Aviva’s pension account, and the cost of L&G’s fund management work.

How do I get started?

We’d love to help you start – or switch – your pension into something simple, solid and clear like the solution above.

Of course our advice will be specific to your requirements, and we have many alternatives at our disposal.

You can kick things off by getting in touch here.