SIPP Deposit Accounts OR SIPP Gilts

DingDongDan

I have a pension pot (100k-ish atm) that -I believe- I wish to place inside a SIPP wrapper, although stocks, shares and the like are off the table as I don’t wish to depend on the swings of markets.

SIPP Deposit Accounts OR SIPP Gilts is my question, together with what offerings and where are currently out there, and what the pros and cons (and costs?) may be between SIPP Deposit Accounts OR SIPP Gilts.

Also, is there any other option beyond SIPP Deposit Accounts and/or SIPP Gilts that isn’t stocks, shares, etc?

QrizB

How old are you?

Holding your SIPP in cash or cash-like investments might make sense if you're in your 70s, but much younger than that and IMO you'll be on the path to a much poorer retirement.

Lowtrawler

DingDongDan said:

I have a pension pot (100k-ish atm) that -I believe- I wish to place inside a SIPP wrapper, although stocks, shares and the like are off the table as I don’t wish to depend on the swings of markets.

SIPP Deposit Accounts OR SIPP Gilts is my question, together with what offerings and where are currently out there, and what the pros and cons (and costs?) may be between SIPP Deposit Accounts OR SIPP Gilts.

Also, is there any other option beyond SIPP Deposit Accounts and/or SIPP Gilts that isn’t stocks, shares, etc?

Your comments on the long-term bond yields thread suggest you need to improve your understanding of gilts before taking that plunge.

As QrizB says, a lot will depend on your age but also on your retirement strategy. If you are at or close to retirement, the simplest and safest option is an annuity - particularly if you are a novice investor. If you have many years to retirement, gilts and deposit accounts are unlikely to be your best option.

Where is your current pension pot invested? I assume it is already inside a pension wrapper as it is unlikely you could deposit £100k into a SIPP if it is not. Why do you feel a SIPP is the better option compared to your current pension wrapper?

SVaz

It’s an impossible question to answer without knowing your age and your plans for the cash.
Is it your whole sum of retirement funds or do you have other pension pots / a nice DB income to look forward to?
I’m assuming you don’t have a massive cash ISA hanging around either? 

Is the pot going to provide an income ? When? 

DingDongDan

Lowtrawler said:

DingDongDan said:

I have a pension pot (100k-ish atm) that -I believe- I wish to place inside a SIPP wrapper, although stocks, shares and the like are off the table as I don’t wish to depend on the swings of markets.

SIPP Deposit Accounts OR SIPP Gilts is my question, together with what offerings and where are currently out there, and what the pros and cons (and costs?) may be between SIPP Deposit Accounts OR SIPP Gilts.

Also, is there any other option beyond SIPP Deposit Accounts and/or SIPP Gilts that isn’t stocks, shares, etc?

Your comments on the long-term bond yields thread suggest you need to improve your understanding of gilts before taking that plunge.

As QrizB says, a lot will depend on your age but also on your retirement strategy. If you are at or close to retirement, the simplest and safest option is an annuity - particularly if you are a novice investor. If you have many years to retirement, gilts and deposit accounts are unlikely to be your best option.

Where is your current pension pot invested? I assume it is already inside a pension wrapper as it is unlikely you could deposit £100k into a SIPP if it is not. Why do you feel a SIPP is the better option compared to your current pension wrapper?

I am definitely trying to get a solid understanding of gilts before taking any plunge.

Age: 47.5
Plan to retire at 50 at most.

Have over a million in assets:

• x2 properties (250k altogether)
• ISAs (+100k)
• cash (800k in between fixed-term bonds and stocks)
• pension pot (100k)
• a 100k savings' policy pot that will come age 65.

I owe nothing to no one (except this month's credit card £450 on groceries).
We [husband and I] live a very low key life.
Atm, we spend 1.5k/month [including on this amount our low-key x2 yearly hols].

I want to think conservatively with the 100k pension pot and to somewhat make it to keep up with inflation.

Isthisforreal99

DingDongDan said:

Lowtrawler said:

DingDongDan said:

I have a pension pot (100k-ish atm) that -I believe- I wish to place inside a SIPP wrapper, although stocks, shares and the like are off the table as I don’t wish to depend on the swings of markets.

SIPP Deposit Accounts OR SIPP Gilts is my question, together with what offerings and where are currently out there, and what the pros and cons (and costs?) may be between SIPP Deposit Accounts OR SIPP Gilts.

Also, is there any other option beyond SIPP Deposit Accounts and/or SIPP Gilts that isn’t stocks, shares, etc?

Your comments on the long-term bond yields thread suggest you need to improve your understanding of gilts before taking that plunge.

As QrizB says, a lot will depend on your age but also on your retirement strategy. If you are at or close to retirement, the simplest and safest option is an annuity - particularly if you are a novice investor. If you have many years to retirement, gilts and deposit accounts are unlikely to be your best option.

Where is your current pension pot invested? I assume it is already inside a pension wrapper as it is unlikely you could deposit £100k into a SIPP if it is not. Why do you feel a SIPP is the better option compared to your current pension wrapper?

I am definitely trying to get a solid understanding of gilts before taking any plunge.

Age: 47.5
Plan to retire at 50 at most.

Have over a million in assets:

• x2 properties (250k altogether)
• ISAs (+100k)
• cash (800k in between fixed-term bonds and stocks)
• pension pot (100k)
• a 100k savings' policy pot that will come age 65.

I owe nothing to no one (except this month's credit card £450 on groceries).
We [husband and I] live a very low key life.
Atm, we spend 1.5k/month [including on this amount our low-key x2 yearly hols].

I want to think conservatively with the 100k pension pot and to somewhat make it to keep up with inflation.

Baring in mind you have a minimum of 9/10 years till you can access the SIPP I think you should aim higher than just keep up with inflation. What is the current SIPP invested in and how is it
 currently performing?

Does your wife have any pension provision?

What do your state pension forecasts look like?

artyboy

Isthisforreal99 said:

DingDongDan said:

Lowtrawler said:

DingDongDan said:

I have a pension pot (100k-ish atm) that -I believe- I wish to place inside a SIPP wrapper, although stocks, shares and the like are off the table as I don’t wish to depend on the swings of markets.

SIPP Deposit Accounts OR SIPP Gilts is my question, together with what offerings and where are currently out there, and what the pros and cons (and costs?) may be between SIPP Deposit Accounts OR SIPP Gilts.

Also, is there any other option beyond SIPP Deposit Accounts and/or SIPP Gilts that isn’t stocks, shares, etc?

Your comments on the long-term bond yields thread suggest you need to improve your understanding of gilts before taking that plunge.

As QrizB says, a lot will depend on your age but also on your retirement strategy. If you are at or close to retirement, the simplest and safest option is an annuity - particularly if you are a novice investor. If you have many years to retirement, gilts and deposit accounts are unlikely to be your best option.

Where is your current pension pot invested? I assume it is already inside a pension wrapper as it is unlikely you could deposit £100k into a SIPP if it is not. Why do you feel a SIPP is the better option compared to your current pension wrapper?

I am definitely trying to get a solid understanding of gilts before taking any plunge.

Age: 47.5
Plan to retire at 50 at most.

Have over a million in assets:

• x2 properties (250k altogether)
• ISAs (+100k)
• cash (800k in between fixed-term bonds and stocks)
• pension pot (100k)
• a 100k savings' policy pot that will come age 65.

I owe nothing to no one (except this month's credit card £450 on groceries).
We [husband and I] live a very low key life.
Atm, we spend 1.5k/month [including on this amount our low-key x2 yearly hols].

I want to think conservatively with the 100k pension pot and to somewhat make it to keep up with inflation.

Baring in mind you have a minimum of 9/10 years till you can access the SIPP I think you should aim higher than just keep up with inflation. What is the current SIPP invested in and how is it
 currently performing?

Does your husband have any pension provision?

What do your state pension forecasts look like?

Corrected that for you.

Obviously risk appetite is a personal thing for the OP, and right at the minute it is still possible to keep pace with inflation using non-share/index related savings and investments (at least, if they are within a tax-free wrapper).

But historically, this approach has led to an overall reduction in 'purchasing' value, even if capital itself is preserved. So... it might be a different risk, but risk is still there...

QrizB

DingDongDan said:

Age: 47.5
Plan to retire at 50 at most.

So, you've got at least a 40-year (and potentially 50-year or more) investment horizon. You could buy index-linked gilts and see about 2% guaranted annual growth. Or invest less cautiously and expect to do better than that.

DingDongDan said:

Have over a million in assets:

• x2 properties (250k altogether)
• ISAs (+100k)
• cash (800k in between fixed-term bonds and stocks)
• pension pot (100k)
• a 100k savings' policy pot that will come age 65.

I'm assuming you plan to live in one of those properties?

I'd suggest you consider moving your "cash" into your ISAs, for tax reasons.

Nevertheless, a million quid in an index-linked gilt ladder would give you about £38k per year for 40 years, or £33k per year for 50 years.

Those figures are based on the tool at https://lategenxer.streamlit.app/Gilt_Ladder so E&OE.