SIPP for National Savings

kidmugsy

Mjpg wrote: »

Thanks for the very helpful replies.
I need some sort of actual pension fund (hence SIPP) in order to qualify for pension tax relief. I can't just use a bank account.
I'm hoping to retire relatively soon, so in these turbulent times, security (eg unlimited Government backed NS&I) is most important to me. Growth is not important.
Hence thinking that a low-cost SIPP investing in NS&l made sense.
I'd be interested to hear different views.

Fair enough; in your shoes I'd probably do the same.

atush

if i was drawing all the cash in a year or two- sure i would think like you.

But if not buying an annuty and doing drawdown, i would not expose myself to all the risks of cash incl inflation risk and shortfall risk.

Isbjorn

I have just had confirmation today that NS&I products cannot be held on the Hargreaves Lansdown platform.
However, the potential good news is that HL are looking towards making their new 'Active Savings' facilty available within their SIPP - this would enable fixed term, fixed rate, bank and building society bonds (providers selected by HL) to be held in the HL SIPP (HL charge the banks up to 0.25%). This would deliver much better interest rates than their standard rates on cash holdings. Usually these products offer better interest rates than the equivalent from NS&I, and presently HL say that the 5 year term products are offering inflation beating rates. It will be interesting to see how the £85,000 FSCS limit is applied to these where people's SIPP pots exceed this limit i.e. whether it will be necessary to spread across several bond providers, and on how new contributions can be weaved in for those still making contributions to their SIPPs. You can sign up to a HL newsletter alert to keep abreast of developments on this new facility.

Albermarle

I'm hoping to retire relatively soon, so in these turbulent times, security (eg unlimited Government backed NS&I) is most important to me

In terms of financial markets , or even global news , current times are in fact not particularly turbulent .
Our local spat about Brexit can probably be ignored in investment terms .