Imterest on cash within a mainly shares SIPP

gadgetmind

atush wrote: »

Anyone transferring a Final Salary/Defined benefit pension to a Sipp seems to me to be unfit to make financial decisions.

I'd transfer my SIPP in the other direction at that drop of a hat!

Of course, I'd then have to start mithering on if asked to contribute so much as a sliver of my future salary towards it.

bigadaj

atush wrote: »

Anyone transferring a Final Salary/Defined benefit pension to a Sipp seems to me to be unfit to make financial decisions.

In general I'd agree but there are circumstances whereby it could be sensible, this seems the problem with getting advice for people with some financial knowledge, as they wouldn't be able to do it even were it to make sense.

I give clients professional advice and have to accede to the clients wishes if they differ, I then just make sure my paperwork is in order confirming my advice if teh clients option is comfirmed go be sub optimal and don't see why financial advice should be any different.

DRSMITH

atush wrote: »

Anyone transferring a Final Salary/Defined benefit pension to a Sipp seems to me to be unfit to make financial decisions.

A blanket statement?
Regardless of gut re-action, I would reccomend checking the pro's and cons of staying in final scheme or moving out (or having someone with your interest at heart check for you).
There are so many variables, a blanket call can't be made.
In my own case, I found in the small print that only some components of my pension sum would increase with inflation, overall it will not and lose value over time. With increasing life expectancies this accentuates the need to atleast keep up with inflation in a chosen pension scheme.
Also, in my own case, I am unmarried, so 'widows benefit' has zero value, so I'd rather the apply it's equivalent transfer value to a scheme where I can realise the benefit.
As a personal preference, having a background in finance, I'd rather make or lose money myself that leave it in the hands of an administration I have no control over.
So... you may be right, but take the time to review it, but it can take time. Again in my own case it took months (each response to a letter can take 2-3 weeks) to gain clarification from pension trustees on the small print, to get facts and figures on how annual increases are calculated, to realise it's lower than expectations from broad unquantified statements.