Hibernian Clear Plan Pension Bid/Offer Spread??

S

sbsinnott

Guest
Hello Everybody

I wonder could somebody help me get to grips with my New Hibernian Clear Plan Pension.

The Pension lists a number of funds across which I can spread my pension funds. I can make 6 fund switchs per year free of charge, after which I pay a Euro 30 administration fee. Apart from this the only charge to the fund is a 1% administration fee annually. Well this is how it has been explained to me.

On examining the list of funds, I found that they usually have a bid/offer spread of 5%. Does this mean that every time I switch funds, it costs me 5%.

My Insurance Broker has explained to me that my fund switchs will be on a Bid to Bid basis and so I do not loose the 5% each time I switch.

I just do not understand this. I would prefer to get this right in my head now rather than make 10 switchs and then find out I had made a big mistake and lost 50% of my pension due to the Bid/Offer spread.

Kindest Regards

Brian
 
The 5% bid/offer spread is effectively a charge on your investments in to the Pension. It means that for every €1 you put towards your pension, 95c goes in to the pension fund and the other 5c is taken by Hibernian for the pleasure of managing your money. You've already taken the hit when you add money to your fund so it doesn't have an impact when you switch funds.
 
Dearg Doom

Thank you for replying. You have put my mind at rest.

Kindest regards

Brian
 
Brian

There is no bid/offer spread on this plan. If anything the 5% could be comission paid to your broker.

You might want to check this out with him.
 
On examining the list of funds, I found that they usually have a bid/offer spread of 5%.
Click to expand...
HI Brian - Can you explain this sentance further? Does the 5% bid/offer spread apply to you?
 
TRS30 and RainyDay

Apologies for not replying sooner.

Initially it was this link:

[broken link removed]

that caused me some worry.

It shows a bid offer spread of 5% on most funds. I thought I would loose 5% each time I switched between funds.

I now believe that I only loose 5% when I initially lodge cash to the pension scheme, and following that all fund switches are on a bid to bid basis. Hence I am not loosing 5% each time.

Kindest regards

Brian
 
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