Is a SIPP pension with HL safe?

[Sambola]

Hey guys, compared to a typical pension you'd get with an employer, Is a SIPP pension with HL safe?

[northernladuk]

Hey guys, compared to a typical pension you'd get with an employer, Is a SIPP pension with HL safe?

Yes and no and maybe and could be.

Generic answer with no detail that's not much use, somewhat similar to the question.

To answer such an open ended question would take a very long reply to cover all the aspects you might be thinking about and the ones you aren't.

Bearing in mind you are in charge of your HL SIPP and don't appear to be very clued up on it all the answer you want is absolutely not. It's not safe at all and there is good chance you are going to lose a lot of money.

[Scruff]

They key here is "Self-Invested Personal Pension".

You decide what you are going to invest in, be it a traditional managed fund, or Stocks and Shares, as an example. The risk is yours.

Benefits are that you can choose how to (gamble) invest your own money into a fund which you, ultimately manage.

[Hobosapien]

To answer the OP's question, yes SIPPS are safe from HL.

Best SIPP: Build a low cost DIY pension - MoneySavingExpert

Usually with SIPPs, the broker you buy it through, eg, Hargreaves Lansdown, doesn't hold any of the cash; it simply acts as a conduit for you to put the money into whatever funds or investments you want.

Therefore, in the unlikely event it went bust, your money should be OK, and still held by the fund manager or bank it resides with. The protection applies should any of those go into default.

If the operator of a fund, trust or other investment vehicle you've put money into goes bust, you're eligible to get your money back, up to a maximum of £50,000.

If you decide to hold the money as cash within the SIPP, you're then normally covered under the standard £85,000 cover per person, per institution rule, the same as normal savings.

[Lance]

Hey guys, compared to a typical pension you'd get with an employer, Is a SIPP pension with HL safe?

What do you mean by safe?
Are you worried that HL might steal it?
Or that it might be stolen?
Or that it might not return what you want?

Given your apparent knowledge of pensions I strongly recommend you speak to an IFA.

As for HL vs employer pensions. It depends.

Just find professional advice.

[SimonMac]

Its safer than if you were invested with Robert Maxwell, but not as safe as an Civil Service Golden Pension.

Most big company pensions will have the protection of the Pension Protection Fund which gives you something (usually 90%) over nothing, if HL goes under you still own the shares and funds as they should be help separately from company assets.

[dingdong]

Its safer than if you were invested with Robert Maxwell, but not as safe as an Civil Service Golden Pension.

Most big company pensions will have the protection of the Pension Protection Fund which gives you something (usually 90%) over nothing, if HL goes under you still own the shares and funds as they should be help separately from company assets.

Investors using Beaufort's platform thought their investments were safe as they were held separately in nominee accounts - unfortunately nobody had realised that liquidators can quite legally raid your holdings should the platform go bust to cover their fees even if they are in your name.

Ultra cautious people should spread their savings and investments out across more than one platform and only play with the big boys.

[sludgesurfer]

Hey guys, compared to a typical pension you'd get with an employer, Is a SIPP pension with HL safe?

See below. I can't recommend monevator enough.

Weekend reading: Yes, even brokers can fail you

What you need to know about nominee accounts | Monevator

Investor compensation schemes – are you covered? | Monevator

[contractorinatractor]

The main reason not to use HL:
Their fees are eye-watering over the long term. There are far cheaper providers with whom you can open a SIPP and pour in cash in just the same.

Management fees are prohibitively expensive with HL.

[Sambola]

Yes and no and maybe and could be.

Generic answer with no detail that's not much use, somewhat similar to the question.

To answer such an open ended question would take a very long reply to cover all the aspects you might be thinking about and the ones you aren't.

Bearing in mind you are in charge of your HL SIPP and don't appear to be very clued up on it all the answer you want is absolutely not. It's not safe at all and there is good chance you are going to lose a lot of money.

So is there a pension option for contractors that is as safe as full time employees?