Pension Lump Sum - Safe Investment ?

RetiredRay

Hi folks ... well at long last we have reached our retirement. After a lifetime of doing everything in moderation the lump sum is coming. What do I now do with £100k ? Advice please ...

BLB53

The better returns will usually be provided by investments...equities, bonds, property etc. so it may be worthwhile taking some time to educate yourself to see whether you can become confident to diy.

Otherwise you may need to pay for some financial advice or just stick to cash deposits but this is risky as your returns are unlikely to keep pace with inflation.

xylophone

If by safe you mean "no risk to capital" (apart from inflation risk), then you are restricted to deposit accounts of one kind or another.

There's the recently issued Guaranteed Growth Bonds from NS&I.

https://www.nsandi.com/our-products

Or http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

IanSt

RetiredRay wrote: »

What do I now do with £100k ? Advice please ...

All investments have some degree of risk. So how much loss are you prepared to risk? If zero then you are going to be stuck with putting it into savings, and you'll then face the current reality that year on year your money will be worth less after inflation.

dunstonh

What type of pension is it?

If its defined benefit, then the safest option and the one likely to yield the best results is to not take the pension lump sum but take the increased income.

If it is money purchase, then again, leaving it in the pension until you actually need it can be the best option.

When you say safe, what do you mean by safe? Inflation risk, shortfall risk, provider risk, investment risk etc

RG2015

RetiredRay wrote: »

Hi folks ... well at long last we have reached our retirement. After a lifetime of doing everything in moderation the lump sum is coming. What do I now do with £100k ? Advice please ...

Is you pension enough to cover your monthly and annual expenses? If this is the case, then you need to decide what your plans are for the lump sum of £100k.

I am in a similar position with a slightly lower amount. I chose not to use the lump sum to increase my monthly pension as this covered my needs with some left to spare. I am now trying to maximise my interest rates whilst I decide on my future plans.

kidmugsy

Bung £50k each into Premium Bonds and defer the problem while you learn about investing. Or maybe £45k each, and each buy £5k of gold sovereigns if you have somewhere safe to store them.

Mr_Costcutter

Welcome to the Boards Ray and congratulations on your retirement

I would second kidmugsy's advice - buy some premium bonds and give yourself time to consider all your options.