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Aviva SIPP or Pensionbee
Comments
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If you have a SIPP - yes you do have to choose the investment fund ( for inexperienced investors there is simple guidance available) but after that the fund will manage itself.
No, you don't if it's a non-workplace SIPP, which is what OP is considering. There must be a default fund - which I guess is some sort of choice, if only by dint of choosing not to choose!
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Pension Bee has a default fund, but it is not a SIPP.
The usual SIPPs discussed on here - HL, AJ Bell etc do not have default funds. If you do not choose how to invest your money, then it just stays as cash.
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The FCA introduced a requirement in December 2023 for all non-workplace SIPPs to offer a default fund for non-advised customers, precisely because so many people left their money languishing as cash.
AJ Bell's is the Pension Builder Fund and HL's is the HL Growth Fund.
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1 -
It's worth noting that the default is not necessarily the best option for an individual. The DIY providers often choose an in-house fund to generate additional fee income. I mean, you can't blame them for doing that, but it's not optimal for anyone with a decent-sized fund.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
Although presumably it wouldn't be the worst option either?
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OK I did not know that. What happens if you want to stay in cash , or you transfer money in and leave it a few days whilst you consider what to invest in ? Can you stop it going to the default fund ?
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You can't be forced to use the default fund. Have a look at which gives a good explanation of the 'why' and then the 'how'.
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
I'm unsure how I want to invest, hence why I'm here asking for advice, not be lectured as to whether I'm taking it seriously or not. I took your previous post on board but found your last comment extremely rude.
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Thanks for the link.
It is different from a traditional workplace/auto enrolment default fund, where your money just goes automatically into a default fund if you take no action. In this case it is more of a 'nudge' .
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There must be a default fund - which I guess is some sort of choice, if only by dint of choosing not to choose!
"If you choose not to decide, you still have made a choice" - Rush, Freewill.
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