The best first place is to put as much into a pension as you are allowed as you'll get a massive boost for the last time. Just leave it as cash. Depending how much you've put into your pension over the past few years and how much you earned, that could be anywhere from nothing to most if it.

The second thing is that there is no such thing as "no risk to the capital with above average returns"

Though the follow up to that is "above average" compared to what ?

Anyway, really it's a self contradictory question, because if you could get above average returns with no risk everyone would pile in to whatever that was, and then the returns would be average, by definition.

People would need more info on your financial circumstances, there are many possibilities, and no simple answer.

What is your current income? Could you put it into a SIPP over this tax year (quickly) and next, getting the 40% taz relief, keep it in cash and withdraw over several years?

I believe HL do'nt charge for keeping cash in the SIPP provided you don't close it within the year. Not sure what the charges would be for withdrawal.

For smallish sums you can get good returns from high interest current accounts. For large sums like £100K you wont get any better than the 1% or so from NSandI if your requirement is no risk to capital. Even then you are risking a loss in real terms because of inflation. If you are willing to accept a small risk to some of your capital perhaps you could look at P2P. If you are willing to spend some of the £100K the best return is probably to use it to defer your State Pension which gives a 5.8% inflation matched increase for each year deferred.


Where is the best place to put 100k with no isk to the capital and above avarage return to supplement a pension? Thank you.(I am presently a 40% tax payer but will retire in the near future and become a 25% tax payer).
Originally posted by jerry.matt

You seem to be making the common mistake in assuming that the whole amount needs to be in one place.

There is no reason why you couldn't put part of it in a S&S ISA and keep the remainder in a savings account to balance the risk and maximise your return. If returns follow historical patterns then you may well find that the S&S part becomes substantially larger than the cash element even if it begins smaller proportion.

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