Last 5 years of Pension

Supercalafragalistic

Good Afternoon,
I have 150k in a pension pot , and want to take pension age 60.

I am not an exciting person and have scrimped to put this away, so my appetite for risk is low.
Its currently in a horribly complicated pension ran by a company called Metlife, and I am minded to put it into a Sipp.

Are there any nice boring, interest earning but safe ways within a sipp to do this please, or is a matter of deposit accounts ?

Would be grateful for input..have seen two advisers with differing views, so would be interested to know what the trusted mse community think.

Thanks

Supercalafragalistic

Any suggestions anyone?

iarniee

Legal & General.

barnstar2077

How do you plan on using the pension at 60, do you want to buy an annuity or go into flexible draw down?

If you are going to go into draw down then you could invest the bulk of your money in one of the lower equity Vanguard life strategy funds, like the VANGUARD LIFESTRATEGY 20% EQUITY ACCUMULATION or VANGUARD LIFESTRATEGY 40% EQUITY ACCUMULATION for instance and then have a chunk of it in a short term bond fund like the VANGUARD GLOBAL SHORT-TERM CORPORATE BOND INDEX or the VANGUARD UK SHORT-TERM INVESTMENT GRADE BOND INDEX. The VLS fund would hopefully keep growing and the bond fund would be used for spending and then topped up from the VLS fund when it is doing okay.

Food for thought anyway,

Also, why do you say your current pension is complicated?

barnstar2077

Don't forget that you may be risk averse, but there is also some risk in taking the safest, lowest earning option as inflation will eat your money anyway.

Supercalafragalistic

My existing one is not what i thought it was. It was supposed to provide a guaranteed income at age 60....it turns out the income isnt guaranteed, just the annuity rate...which is rubbish....and expensive to run.

ffacoffipawb

Supercalafragalistic wrote: »

My existing one is not what i thought it was. It was supposed to provide a guaranteed income at age 60....it turns out the income isnt guaranteed, just the annuity rate...which is rubbish....and expensive to run.

How much is the guaranteed annuity rate at age 60?

Also thanks for getting that annoying Mary Poppins song back in my head.

Here is my payback ... Baby Shark doo doo doo ..

xylophone

You have a Guaranteed Annuity Rate?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

If so, have you taken
appropriate independent advice from an FCA authorised adviser?

Supercalafragalistic

Yes, guaranteed annuity rate, 3.5 pc at age 60. I did take advise from an ifa.

ffacoffipawb

Supercalafragalistic wrote: »

Yes, guaranteed annuity rate, 3.5 pc at age 60. I did take advise from an ifa.

Unless it is index linked it is very poor. Even an uncompetitive company that I work for gives a 4% rate for a level annuity at 55, my age so I checked. Their rate would be nearer 4.5% at 60.

I had no intention of buying an annuity, I was just nosy.

xylophone

I did take advise from an ifa.

In respect of a transfer to a SIPP? See link in my post above as your GAR is a safeguarded benefit.