Still better and more secure than any other cash alternative and with a much higher limit.
With withdrawal costing just 3 month's interest and the amount withdrawn this is about as good as it gets for cash in 2018.
until 2020.) Also proposed was a 2.2% government bond (from Spring 2017) but only up to 3,000. But at 66 (net) per annum interest it only looks good against the paltry sums being offered for cash savings.
Wisely invested, such pension funds (including the National Insurance surplus*) should be overflowing like a cornucopia !
Could it be that companies, particularly those sailing close to the financial wind, have found such funds to be a cheap way to find cash ?
A number of companies were rubbing their hands with glee at the prospect of buying up annuities from cash-strapped pensioners at half their value.
So, not only would they have been ripped off once by having to buy poor paying annuities, they would be ripped off again and left in an even worst state in their old age. suddenly realised that they (or someone else) would have to pick up the bill for supporting old people above the bread line (and not trusting the financial sector to give fair value), have stopped the bill in its tracks.
Names such as BHS, Carilion and Tata Steel come to mind..