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    • gm0
    • By gm0 7th Aug 18, 11:19 PM
    • 5Posts
    • 1Thanks
    LTA/PCLS and mutiple SIPPs ?
    • #1
    • 7th Aug 18, 11:19 PM
    LTA/PCLS and mutiple SIPPs ? 7th Aug 18 at 11:19 PM
    People have recommended using multiple SIPP platforms for drawdown as a mitigation for platform/SIPP provider failure. Others have said "Pick sensibly" and forget it.

    I recognise that the 2xSIPP design comes at a material cost - but can see that it does two useful things - double regulated protection (albeit still unbelievably skimpy vs occupational schemes in payment). Second if there was an IT catastrophe or an administration then half your income would still be accessible to flow and for investment management during whatever period 1 year or more things went dark. And half would be out of the reach of any creative insolvency practitioners in a future Beaufort.

    I haven't decided about the value vs risk premium paid on this - my question is about unknown disadvantages or process gotchas.

    If I do set things up this way and move from one deferred annuity only scheme to 2x SIPPs does this complicate taking PCLS and handling fixed protection certificates. Clearly each SIPP provider releasing PCLS at commencement only has part of the picture and part of the money but this must arise all the time with people with multiple pensions.

    In any event are there any "gotchas" with setting things up this way other than 1) added cost 2) the mild added complexity for rebalancing or other ongoing portfolio management tasks (doesn't seem too bad if setting it up this way from scratch in anticipation of drawdown).
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