Holding cash in a personal pension

Stargunner

A_T said:

Neversurrender said:

I have approx £50,000 in cash in my Sipp portfolio.
My intention is to take £16,666 out each financial year for the coming 3 years starting April 2023
It hurts me that the interest offered is pitiful
I am holding it in cash as I will be needing it over the next 3 years and don't want it to go down then crystallise a loss.

So reading this thread would anything similar suffice for my situation?

if you move your SIPP to Hargreaves Landown you can buy gilts maturing in 2023, 2024 and 2025 - interest on these is currently 4%+ less HL's fees.

Where does it tell you that the interest is 4% per year as I can only see the different coupon  percentages. Is the rate variable as and when the BOE changes interest rates?

Freebird53

I have attempted to follow this thread with interest. However, on casual inspection, it's too complicated for me.

I'm with Pdiddy. Please offer me a decent interest rate on my SIPP cash!

masonic

Stargunner said:

A_T said:

Neversurrender said:

I have approx £50,000 in cash in my Sipp portfolio.
My intention is to take £16,666 out each financial year for the coming 3 years starting April 2023
It hurts me that the interest offered is pitiful
I am holding it in cash as I will be needing it over the next 3 years and don't want it to go down then crystallise a loss.

So reading this thread would anything similar suffice for my situation?

if you move your SIPP to Hargreaves Landown you can buy gilts maturing in 2023, 2024 and 2025 - interest on these is currently 4%+ less HL's fees.

Where does it tell you that the interest is 4% per year as I can only see the different coupon  percentages. Is the rate variable as and when the BOE changes interest rates?

The rate is fixed when the gilt is launched. If you buy it later, then the price you pay will be adjusted such that your total return is in line with current interest rates. You therefore need to consider both the interest that is paid and the gain you get when the bond matures at its face value of £100. Your overall return is not just attributed to interest. The calculator mentioned by OldScientist is a good way to quickly check what return you would get. If you hold it to maturity, you'll get that return regardless of what happens to interest rates.