Cash funds

averageguy11

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

dunstonh

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?

averageguy11

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

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.

dunstonh

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.

averageguy11

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

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.

averageguy11

Thanks...I think I will be ringing them to check out a few details