Notes from the Autonomous Region of Great Britain

Wednesday, September 17, 2008

Is the "cash" in your pension fund safe?

There's been much talk of keeping the balance in your bank account/s below the insured limit - but if you are cautious and want to preserve the value of what's in your pension pot, how can you do it?

"Mish" reports a massive write-off by a money market fund manager, following losses with Lehman.


If you have funds in a money market and it is not backed by only Treasury debt, you need to consider moving that money right here, right now. - Karl Denninger


dearieme said...

If I put my SIPP entirely into Gilts, is that safe? Oh dearie me.


Government bonds are as safe as poss, aren't they? But so-called cash funds in pensions are often an amalgam of gilts, cash and "money market instruments". Oh, dear, we've had a look underneath now, best put the rock back down carefully.


... oh, and I don't suppose cash vested with a bank/building society within a pension fund is necessarily covered by the £35k guarantee - isn't it a share of an aggregated fund held on behalf of many policyholders? Best contact your pension manager to ascertain the exact status of your "safe" holdings.