Setting up a SIPP but without stocks, shares etc.

Northwest54321

I am wondering if anyone has advice on how to set up a SIPP that does not involve investing in stocks and shares. We've been investing in a private pension for 10 years (we're self employed so have no employer pension) and it appears an utter waste of time - enriching the managers while we have significantly less than we invested into it. I am thinking it might be best to just put the money in a high interest account - but can you set up a SIPP and then just put the money into somewhere with a guaranteed interest? I have no wish to be involved in wheeling and dealing on stocks and shares. All the SIPP's I see online appear to be for trading portals - advice on this site on for SIPPs appears to assume that you'd want to be investing in stocks or bonds. 

NannaH

You can hold cash in a Sipp with no charges and be paid a bit of interest.
At the moment though, with interest rates having risen,  a fairly safe investment is in a Short term money market fund. Currently paying around 5%.  It would cost around 0.5% in platform and fund fees. 
Or you could buy a 5/ 10 year Goverment index linked Gilt, you get interest  payments ( coupon) and your money back + inflation.  I’ve been looking into this after someone suggested it to me on here.  There is usually a set up charge for buying these in a Sipp, from what I’ve seen. 

NannaH

There’s something not right if you’ve invested for 10 years, got tax relief on top and managed to lose money.   The blip during covid soon bounced back and more .
Are you heavily invested in Bonds ?
What’s your Equities v Bonds split?  

QrizB

NannaH said:

There’s something not right if you’ve invested for 10 years, got tax relief on top and managed to lose money.

That was my thought too!

Northwest54321 said:

We've been investing in a private pension for 10 years (we're self employed so have no employer pension) and it appears an utter waste of time - enriching the managers while we have significantly less than we invested into it.

Which company is your pension with? How is it invested?

dunstonh

I am wondering if anyone has advice on how to set up a SIPP that does not involve investing in stocks and shares.

Pretty much all of them offer non equity options.

We've been investing in a private pension for 10 years (we're self employed so have no employer pension) and it appears an utter waste of time - enriching the managers while we have significantly less than we invested into it

Equities have done well over the period.   It is pretty hard to see how you could have lost money over that period with any mainstream personal pension using equity funds.       If you were talking about non-equities then thats a different matter.   They have been very poor of late but equities haven't.   Are you perhaps at risk of not understanding what you have and making bad decisions because of that?

Albermarle

 We've been investing in a private pension for 10 years (we're self employed so have no employer pension) and it appears an utter waste of time

With a personal pension, if you do not choose the investments, they will normally go into a medium risk default fund.

I am picking figures a little bit out of mid air, but I would expect a typical medium risk default fund to have increased between 60% and 75% over the last 10 years. 

So did you maybe make your own investment choices when you set the pension up, and these have not worked out for some reason?

Pat38493

Perhaps you could post a summary of your actual pension assets and which funds they are currently invested in, and the associated charges.  You would then get some feedback.  Also some more details about why you think you have less money than you put in after 10 years as this would be pretty unusual for any reasonably invested amounts.

Albermarle

NannaH said:

You can hold cash in a Sipp with no charges and be paid a bit of interest.
At the moment though, with interest rates having risen,  a fairly safe investment is in a Short term money market fund. Currently paying around 5%.  It would cost around 0.5% in platform and fund fees. 
Or you could buy a 5/ 10 year Goverment index linked Gilt, you get interest  payments ( coupon) and your money back + inflation.  I’ve been looking into this after someone suggested it to me on here.  There is usually a set up charge for buying these in a Sipp, from what I’ve seen. 

OP The Short term money market funds mentioned above are explained in this link ( ignore the advertising )
Money market funds explained | Raisin UK
If you want to keep cash in a SIPP, the Sipp provider will pay interest on it. The rates will vary but are lower than you would get in a cash savings account.
These money market funds pay a better rate and have become very popular in recent times.

There are also more specialist SIPPs where you can actually hold a normal savings account within the SIPP, although the choice is limited and charges can be a bit higher than 'normal' SIPPs.

mcc100

InvestAcc have the Minerva SIPP which gives access to various deposit accounts with interest rates up to 5%.