A peculiarity of the Irish market, allocation rates confuse at best; at worst they can severely hurt savers and investors. In short, an allocation rate means the percentage of your contribution to a pension fund or an investment or savings product that actually goes into the fund each month. However, while this example is easily understandable, allocation rates are often used in different ways. Rachel McGovern, deputy chief executive of Brokers Ireland, says allocation rates need to be “clearly explained to clients”. Allocation rates of 105 per cent are possible – which means that a broker can take a 5 per cent upfront commission.

Source: The Irish Times February 17, 2026 15:31 UTC