Pension pot to cash based fund?

bigfreddiel

Follow on from my previous thread, my partner retires on 17th July, has a small personal pension with Abbey Life but is not too impressed with their offerings, her Financial Advisor said she should request Abbey Life to transfer her pension pot into a cash based fund (the reasoning is that it will not reduce any further She has no idea what a cash based fund is and if a transfer is possible.

Also who says her pension pot is reducing or will reduce further?

Look forward to any comments?

Cheers fj

EdInvestor

Abbey Life will have a cash fund listed among the various funds she can choose to invest her pension money in (what is it invested in now?check her annual statement).A cash fund is very similar to a savings account, it pays interest and your money is not at risk.

This is not a transfer, it is called a "switch". A transfer is where you move the whole pension to a new provider.

As to whether her pension fund will reduce, depends what it's invested in now, see above.

bigfreddiel

I presume if she switches to a cash fund now she can still elect to use another providor for her pension?

How long can she leave this in a cash fund before deciding what to do?

cheers

fj

EdInvestor

bigfreddiel wrote: »

I presume if she switches to a cash fund now she can still elect to use another providor for her pension?

Yes

How long can she leave this in a cash fund before deciding what to do?

Indefinitely.

bigfreddiel

Thanks for for your replies - all very helpful.

cheers

fj