Cashing in a SIPP.

EthicsGradient

Freebird53 said:

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....

I assume you meant "do pension providers do cash ISAs?", then. Which some do, but I can't see why it would matter. Some firms provide lots of financial products, others are narrower. It's like saying "some supermarkets sell clothes", and pointing out your local supermarket never sold clothes.

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?

We are looking to take out a "small lump sum " £10k from the SIPP.  No rush to take out the remaining 5K , but would we have to wait a certain length of time before taking out a further "small pot".

Scrounger

Ask HL if you can withdraw as two small pots.

Scrounger

Freebird53

EthicsGradient said:

Freebird53 said:

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....

I assume you meant "do pension providers do cash ISAs?", then. Which some do, but I can't see why it would matter. Some firms provide lots of financial products, others are narrower. It's like saying "some supermarkets sell clothes", and pointing out your local supermarket never sold clothes.

Well, it matters to me, as the choice I was given (if it was a choice), was recieve zero.point.nothing interest in cash (stick), or invest in the stock market (twist).

As it is 'pension' money, if I could have put the money into something with a guaranteed return, albiet small, i would have been happier.

EthicsGradient

Freebird53 said:

EthicsGradient said:

Freebird53 said:

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....

I assume you meant "do pension providers do cash ISAs?", then. Which some do, but I can't see why it would matter. Some firms provide lots of financial products, others are narrower. It's like saying "some supermarkets sell clothes", and pointing out your local supermarket never sold clothes.

Well, it matters to me, as the choice I was given (if it was a choice), was recieve zero.point.nothing interest in cash (stick), or invest in the stock market (twist).

As it is 'pension' money, if I could have put the money into something with a guaranteed return, albiet small, i would have been happier.

Pensions and ISAs are entirely separate. Once you've put money into a pension, it has to stay there until you're old enough to start withdrawing from it. When you do so, it is as cash, into a current account. What you then do with that is up to you - you do not have to go back to the pension provider to find something new like an ISA.

If you have been paying money into a pension for years, but have never invested in the stock market, nor in bonds (company or government), but just left it there, that's a very unusual approach. Typical pension providers offer low risk (but not no-risk) options that involve bonds.