Cash SIPP

Worried_of_wakefield

Simple one for you clever folks, My intention is to transfer a small FL policy (£45K) into a cash form of a SIPP and drawdown as tax allowances allow.With the LS I have calculated this will supplement my savings and last 3 years until I factor in a DB pension.

My questions are -
a) Will I recover all the capital transferred or expect some charges?
b) Would I enjoy any interest at all or as planned syphon off as tax allows into my Santander 3% accounts?

As I'm only looking at a short draw-down period I can accept the effects of inflation but don't wish to take un-necessary risks.

Cant describe to you how this board has helped over the last few months, many thanks

kidmugsy

Our provider, Hargreaves Lansdown, normally pays next-to-no interest on cash.

It's never charged us for transferring in, or (I think) for taking a TFLS. I can't remember their charge for drawdown, so it must have been nil or trivial. You can look at their charges at their website.

I have no experience with FL.

xylophone

Given what the OP has said, I think that HL might well suit.

Transfer in is normally handled very efficiently by HL - he could take his TFLS and keep the balance in cash (admittedly at virtually nil interest but at no charge either), drawing down over a couple of years at no charge as suits his tax situation.

http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp/transfer

kidmugsy

Here is the HL charges sheet. If you keep your money in cash, and don't close the account within 12 months, it seems that your only charge would be the eventual £30 for finally closing the account. You may wonder how HL makes a living off that: presumably because it has use of the capital you've kept in cash.

http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates