We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Cash funds

Options
I am looking to move my PR money currently in a WP fund at the Co-Op..to a cash fund...longer term i want it in my sipp..any recs re cash funds ..I might be using inc drawdown in 2 years

Any advice warmly welcomed

Comments

  • dunstonh
    dunstonh Posts: 119,608 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Why are you moving into a cash fund? If you are looking at drawdown and want to include protected rights, then why not go with a pension that allows that and not a SIPP?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • averageguy11
    averageguy11 Posts: 420 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    As the sipp is wher most of my capital is...thats wher i want the pr money eventually..for now i want pr money in2 cash
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Some SIPP providers offer a cash account for PR money,

    eg https://www.epml.co.uk

    Does the Co-op offer a cash fund (or equivalent)?

    If the money is in a WP fund, do check that you won't suffer an MVA exit penalty if you switch out without "taking benefits" (ie moving the money out and going into drawdown). .

    If you would suffer such a penalty it may be more sensible to leave the money where it is.What is the Co-op WP fund invested in? Quite a lot of WP funds these days have the majority invested in cash and bonds anyway.
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 119,608 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Some of the CIS pensions have guarnateed annuity rates. If you are that close to retirement, you may find that the CIS pension offers the best option.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • averageguy11
    averageguy11 Posts: 420 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Ther is no penaly..although i must check out wher ther cash is invested..ther is no other fund offered..but the transfer value has increased year by year.....guaranteed..but at what level?

    Thanks for replies to date
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Sounds like the policy has a GIR (guaranteed investment return) typically 3-4%.

    Check whether it has a GAR (guaranteed annuity rate) as well. Typically the GAR will be much higher than current annuity rates, and so you will benefit by leaving the pension where it is.

    One of the few cases where the investor is the winner raather than the insurance company. :)
    Trying to keep it simple...;)
  • averageguy11
    averageguy11 Posts: 420 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Thanks...I think I will be ringing them to check out a few details
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.