"tim...." wrote in message
...

"RobertL" wrote in message
...


Imagine, if you will, someone who has a 'Final Salary Scheme'
pension
with his employer but the fund is in severe deficit which seems to
be
growing year by year. Imagine also that the employee is worried
that
the company might default at some point and fail to make up the
deficit. imagine that at the moment the employee can withdraw 100%
of
his (actuarily calculated) pot and put it into a SIPP.

If he does this, and invest in stocks and shares etc. in the SIPP,
how safe is that investment? Is it possible for the SIPP
management
company to default in some way or is his investment 'ring fenced'
in
some way?

The SIPP is 100% safe wrt the "ownership" of the funds. It is
however not guaranteed to give to a positive return and may return a
negative amount, especially after management fees which can be
significant for small amounts. Small in SIPP terms is perhaps less
than 50-100K.

My wife has a SIPP with HL - about £10k in it. The charges are
insignificant (in fact there are no charges at the moment other than
the annual charge on the underlying funds).

--
Andy