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MEMBERS’ NEWS
Doing your future self a favour The group pension trust scheme recently appointed Acuvest as its pensions advisor. Dr Charles O’Malley is enjoying his retirement. He’s just returned to Ireland after a trip to San Francisco. He and his wife were on one of their visits to see their daughter, who has been living there for 15 years with her husband and two children. A retired dentist, Charles relishes his free time and being able to travel to see his children and grandchildren in the US or the UK (his son lives in London with his wife and three children). These trips are also a great excuse to travel and explore different places – something that was often out of reach during the busy days of running a dental practice in Limerick. The fact that his parents, both selfemployed professionals, had made very little provision for retirement and worked on into their 70s, made Charles acutely aware of his own need to invest in a retirement fund, while still practising as a dentist. “After working so hard all their lives, they had very little to show for it,” says Charles. “Like most people, life took over, other expenses took priority and a pension was put on the long finger. My dad was forced to work until the age of 70 and my mother to 72.”
Group pension trust scheme When the group pension trust scheme was instigated in 1978 specifically for Irish dentists, Charles was one of the first investors. The aim of the scheme is to encourage members to build a personal savings pot that they could convert into an income on retirement. He and other dentists knew that a group scheme (as opposed to individual plans) was the most efficient and cost-effective way for over 1,800 dentists to build individual retirement funds. One such cost reduction came by way of fees. While often ignored by investors, fees can have a serious impact on the size of a fund. A report on pension charges in Ireland indicates that a reduction in fees of 0.2% can increase the amount of the final fund by 3%-4%. Another advantage of the group scheme is the constant oversight of its performance and management from its six trustees, practising dentists and retired ones, including Charles.
specialising in group retirement savings schemes it has the expertise to ensure that the group scheme is as good as it can be. Acuvest is independent of fund managers and administrators, which means that its sole focus is on looking out for the interests of members of the scheme. “Pensions are Acuvest’s only focus,” says Charles. “They don’t earn commission or sell products, and simply provide good advice and oversight. With clients such as AIB, Dublin Airport Authority and Jones Engineering Group, they are well positioned to take the dentists’ scheme to the next level.” One of Acuvest’s first jobs is to make improvements to the administration platform so that members will be able to view their retirement savings information online. It is also in the process of completing a comprehensive review of the fund choices available to members and the associated fees. Paul King, Pension Manager with Acuvest with responsibility for the dentists’ scheme said: “The improvements we are making are designed to help dentists save efficiently for retirement. Along with the trustees, we aim to encourage dentists to start a retirement savings fund, no matter how small, with the reassurance that the scheme and its advisors are looking out for their best interests”. Charles, who didn’t start his pension until he was 40, speaks with the benefit of hindsight: “I didn’t start a pension until very late and wish I’d started earlier. I can’t stress enough the importance of regularly contributing to a pension fund to have something to show for your hard work. In later years, you want to be able to smell the roses! With these thoughts in mind, and recognising that several of us who have served as trustees of the Dentists Trust Scheme (Boyne Trustees) are rapidly reaching our 'sell by' date and wish to step down, we would appeal to present members of the scheme, or indeed any members of the Association, who wish to learn how pensions work, to volunteer as trustees of the newly updated scheme. You will receive training and gain a lot personally, as well as giving service to your fellow members.” For more information on the Dentist’s Group Scheme, contact Paul King, Tel: 01-634 4800.
Appointment of Acuvest In the late 1990s the original scheme was revamped, and late last year a further review was completed. Following this review, it was decided to go out to tender for a pensions advisory company. Independent pensions advisor Acuvest was chosen to take over the management of the scheme and assist with its oversight. As a company
The Association is not making any representation or warranty in general or in particular, as to the suitability of any scheme for any particular individual, given that individual circumstances vary. We recommend that every individual, given that individual circumstances vary, should take independent professional advice in relation to any investment decisions. Members should make an informed choice as to the benefits of any particular scheme and whether it is suitable to their requirements.
Journal of the Irish Dental Association | April/May 2016 : Vol 62 (2)
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