Cashing in a SIPP.

Ciprico

How old is he.... 

If he's under 55 he may find it difficult to withdraw anything from the sipp.... 

Albermarle

Ciprico said:

How old is he.... 

If he's under 55 he may find it difficult to withdraw anything from the sipp.... 

And if he is over 55 and working, is it likely he will retire before state pension age ?

NedS

traceyaj said:

Thanks dunstonh,  basically he hasn't invested the money in anything and just wanted a better interest rate. Part of the total consists of tax relief on the original SIPP investment. So even after paying income tax on a withdrawal he wouldn't be really worse off. Not sure of an alternative to paying tax unnecessarily? Would be grateful if you could enlighten me? thanks.

UK gilts are currently paying around 3.75% for a 2 year gilt. What interest rate is he expecting outside of the pension wrapper?

traceyaj

Ciprico said:

How old is he.... 

If he's under 55 he may find it difficult to withdraw anything from the sipp.... 

65 years old , 9 months or so to the state pension.

traceyaj

NedS said:

traceyaj said:

Thanks dunstonh,  basically he hasn't invested the money in anything and just wanted a better interest rate. Part of the total consists of tax relief on the original SIPP investment. So even after paying income tax on a withdrawal he wouldn't be really worse off. Not sure of an alternative to paying tax unnecessarily? Would be grateful if you could enlighten me? thanks.

UK gilts are currently paying around 3.75% for a 2 year gilt. What interest rate is he expecting outside of the pension wrapper?

4% 18 months fixed rate isa with santander. Not used any Isa allowance this tax year.

Freebird53

Do pension providers do ISA's?

traceyaj

Albermarle said:

Ciprico said:

How old is he.... 

If he's under 55 he may find it difficult to withdraw anything from the sipp.... 

And if he is over 55 and working, is it likely he will retire before state pension age ?

65 and working part time. Hopes to carry on until age 67 . SRP at age 66.

NedS

Freebird53 said:

Do pension providers do ISA's?

Many providers offer both pensions (SIPP) and ISA's, e.g Hargreaves Lansdown, Fidelity etc

Albermarle

NedS said:

Freebird53 said:

Do pension providers do ISA's?

Many providers offer both pensions (SIPP) and ISA's, e.g Hargreaves Lansdown, Fidelity etc

Plus also some of the traditional pension providers, like Standard Life etc. 

Freebird53

Thankyou for the answers.

I was with a well known provider for years, and they never once mentioned it. They did tell me i could invest in the stock market on several occaisions though....