Stakeholder pension and tax loophole question?

sleepless_saver

I want to put £2880 in a cheap stakeholder pension intending to take it right out again and put the proceeds towards our Lamborghini fund.

Can I do this without specifying funds to be purchased? The application forms I've been looking at all seem to require fund selection.

grey_gym_sock

i doubt if stakeholders let you do that. (SIPPs would do.) is there a cash fund, or a money market fund? that could be quite similar to cash.

what will you do if HMG's proposals aren't implemented as planned next year, so you can't take the lot out again immediately?

sleepless_saver

grey_gym_sock wrote: »

i doubt if stakeholders let you do that. (SIPPs would do.) is there a cash fund, or a money market fund? that could be quite similar to cash.

what will you do if HMG's proposals aren't implemented as planned next year, so you can't take the lot out again immediately?

I hope it doesn't have to be a SIPP. I was thinking of a stakeholder because it's cheapest. Why would it be different?

I don't think there's a problem with the implementation of the proposals as I'd be covered by the new £10k limit for small pots which came into effect on 27 March.

grey_gym_sock

stakeholders do have a limited range of investments, which may mean only funds. however, looking at aviva's stakeholder (as an example), they seem to have a deposit fund, which is quite close to cash (though it's possible for its value to fall a small amount).

yes, i think you're OK with the £10k for small posts.

dunstonh

I hope it doesn't have to be a SIPP. I was thinking of a stakeholder because it's cheapest. Why would it be different?

Stakeholders havent been the cheapest since about 2006. Although for small pots, they probably would still be. Although stakeholders are a basic product with basic options. For example, you cant do drawdown on a stakeholder. You can transfer to a drawdown plan though.

sleepless_saver

Looking at the last bit of this Paul Lewis article it seems I need a provider who will agree to do an immediate vesting pension but one which will return me the whole sum rather than 25%+annuity. So maybe drawdown not needed?