Cash savings in Pension

yarncole

I am almost 70 and my pension fund is Nucleus. I do not want any further risk with my pension money in the market. I have therefore instructed my pension fund to cash it all into a drawdown cash account within the pension. I have already taken out the 25% tax free allowance. The remainder approximately 280k I wanted the fund to put into a 2-5 year high interest bank savings accounts, all within the "pension" envelope, without taking it out of the pension and incurring tax. They used to do that but have recently stopped and only place your money on stocks and shares market related etc. 

My question is two-fold: 1. Can I move to another pension fund that will put my money in one or a few bank savings accounts with high interest.
2. Does anyone know if such pension funds exist that do place your money in high interest earning accounts, albeit without me having to take it out of the pension which is then taxable. 

Any suggestions or advice welcome

dunstonh

1. Can I move to another pension fund that will put my money in one or a few bank savings accounts with high interest.

yes.  Although you will likely need a full SIPP and the range of options will only be from banks and building societies that can handle SIPPs.

2. Does anyone know if such pension funds exist that do place your money in high interest earning accounts, albeit without me having to take it out of the pension which is then taxable. 

Any full SIPP.
Although you could also consider short term money market funds which your current platform SIPP has.

I am almost 70 and my pension fund is Nucleus. I do not want any further risk with my pension money in the market.

69 is very young to start de-risking to cash.  Yes, we have had a very good 7 years on the stockmarkets. Doubling in 7 years is quicker than most periods.   However, unless you have reduced life expectancy, going from 100% equities (based on your reference to being in the market) to 100% cash is an extreme move.   You could be invested for another 20 years.    In which time, cash will suffer inflation risk.       You could also consider bonds.  They had a rough period over 2022 to mid 2023 but they will come back to life as interest rates fall.  Less volatility than the markets but potentially better than cash.   A spread across all assets is often best.  Not being 100% in any single asset.

xylophone

I wanted the fund to put into a 2-5 year high interest bank savings accounts, all within the "pension" envelope, without taking it out of the pension and incurring tax. They used to do that but have recently stopped and only place your money on stocks and shares market related etc. 

Is Cash Panel no longer available? https://nucleusfinancial.com/wrap/advisers/our-platform/investment/cash-panel

It is possible to earn interest on uninvested cash within a DIY SIPP.

Example

https://www.ii.co.uk/investing-with-ii/cash-interest-rates

Albermarle

This smaller SIPP provider is mentioned on the forum from time to time as offering some savings accounts.
Minerva SIPP | InvestAcc Pension Administration : InvestAcc Pension Administration (investaccpensions.co.uk)

WillysJeepFan

Hi....   First time on here so bear with me!
I'm Trustee of a Sipp for myself and two relatives.  We have decided to sell a freehold retail unit and this should go through sometime later this year.  We shall have a sum of cash within our pension scheme that I'd like to place in a highish interest account until we decide on other investment opportunities.  Can anyone suggest a secure and highish rate account we can open?  Funds would be there 12 months plus.   Appreciate any guidance

MallyGirl

It depends on the SIPP provider as to what options there are

artyboy

MallyGirl said:

It depends on the SIPP provider as to what options there are

And to cut to the chase, most pension providers and SIPPs won't let you park your money in the high interest accounts that you see listed on the MSE Best Buy tables - there are some true 'whole of market' SIPPs out there but they tend to be more specialist.

WillysJeepFan

Appreciate your comments.............   I just need a home for the funds which are Pension Funds (I don't need any permissions as we are self administered due to the date we opened the fund back in the 70's)   NS&I say they can't so any suggestions welcomed!  

Juno_Moneta

Hargreaves Lansdown pay excellent interest on uninvested cash sitting in drawdown SIPP accounts, rates here :

https://www.hl.co.uk/charges-and-interest-rates

dunstonh

There is always Royal London Short Term Money Market fund that will be present on all SIPPs.

bjorn_toby_wilde

I hold some Royal London Short Term Money Market in my SIPP and it’s returned about 4.95% over the last few months I believe.  Charges are 0.1%

I don’t think you’ll better that rate by holding cash in the SIPP account, although I think Bestinvest have a good rate.