Transferring Sipp into deposit account

kendricks1

Hi, are there any pitfalls to look out for when transferring with the same company to a safer fund.
I’m Looking at a deposit fund with a level of risk of 1.
I basically wish to protect my assets until  I decide how to use my pension. 

Is this something you need a financial advisor for,as it seems straightforward,
thanks.

dunstonh

Hi, are there any pitfalls to look out for when transferring with the same company to a safer fund.

lower medium to long term returns. Increased inflation risk and increased shortfall risk.

I’m Looking at a deposit fund with a level of risk of 1.

In your thread title, you say deposit account.   Here you say deposit fund.  Which is it?
SIPPs can offer deposit accounts.     Typically, they don't offer deposit funds.   The equivalent funds in SIPPs are usually called money market funds or short-term money market funds.   SIPPs also have cash account facilities within them that don't need a fund at all. However, the interest rates can vary in quality.

If you are mistaken and it's not a SIPP but a personal pension or other insured pension, then it's not uncommon to see a deposit fund on those, but they can be closer to money market funds rather than short-term money market funds.    MM funds have a higher liquidity risk than STMM funds.       It's probably a low-risk difference, but if it's a SIPP, you can avoid that risk.  If it's not a SIPP, you won't have much choice.

MallyGirl

Your title is misleading. If you are just talking about changing the investments, still within your pension wrapper, to something lower risk then you don't need advice. Depending on what options your provider offers that could be the 'deposit fund' you refer to, a money market fund or even just leaving it in cash.