Sipp holding a pension in cash or invested wanting drawdown

matty17r

I need to transfer my Aviva stakeholder pension to a company that offers flexible drawdown. My intention is take the 25% TFLS and then drawdown the remainer over 4 years before my SP kicks in. Which would be the cheapest way of doing this. Pot value just over 31k. Should I open a sipp and invest it or hold it as cash. I have just phoned Best invest who charge £100plus vat for taking TFLS and then £100plus vat for every year funds are helds up to 3 years with no charges. This is holding it in cash. Any thoughts please? I did ask for thoughts last year but can't find my posts as this is why I have looked at holding it in cash as someone suggested. TIA

xylophone

Had you looked at a transfer to a Hargreaves Lansdown SIPP?

http://www.hl.co.uk/pensions/drawdown

You could ring and have an initial discussion - staff are helpful.

matty17r

Thanks xylophone - think I need to ring round a few to find out the charges.

zagfles

Yes with HL I think it would be free to hold it as cash and drawdown - you might have to pay a £30 "account closure fee" to close it but wonder what would happen if you drew down to £1?

But you won't get much interest on the cash. But you're unlikely to get much interest anywhere if you want to hold it as cash.

matty17r

zagfles wrote: »

Yes with HL I think it would be free to hold it as cash and drawdown - you might have to pay a £30 "account closure fee" to close it but wonder what would happen if you drew down to £1?

But you won't get much interest on the cash. But you're unlikely to get much interest anywhere if you want to hold it as cash.

Thank you zagfles for your reply. The stakeholder pension has dropped 2k this year that it why I am a cautious person! I am going to ring HL along with a few others.