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Retirement Party

SIPP ACCOUNT CASE STUDY

SIPP ACCOUNT EXAMPLE CASE STUDY

​Please note: This case study is not based on real life events and is intended to demonstrate how a SIPP cash account can be used in a specific scenario. Your returns on your investment may vary depending on the amount you invest and the rate applicable on the account at the time.

James has an existing pension worth approximately £300,000 invested with a leading provider of SIPPs which allows him to pick and choose which stocks and shares he invests in. Over the last few months, share prices have been particularly volatile which has been reflected in the fluctuating value of his pension. 

As James hopes to retire within the next few years, he would like to reduce the risk that this type of SIPP account encompasses and move away from a fund based SIPP. However, his current provider will not allow him access to any SIPP deposit account.

After conducting some research of his own and speaking to an Independent Financial Advisor, James decides to take advantage of Teachers Building Society’s 90 day SIPP cash deposit account, which will help him preserve his capital up until his upcoming retirement and avoid the uncertainty of the stocks and investment market. He instructs his Pension Administrator to transfer his pension funds over to Teachers Building Society.

After investing £300,000 into this SIPP deposit account for three years with Teachers Building Society at a rate of 0.80%, James’s pension pot will have grown to £307,200. Despite the fact that James had to pay an exit charge from his existing SIPP provider, he is satisfied with his decision to make the move as he now has the deposit account investments he wanted and can relax until he retires. The new SIPP account with Teachers Building Society also guarantees that James’s pension cannot fall in value, which was his main concern, whilst accruing some interest between now and retirement.

 

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