With stock markets as uncertain as they are with continued uncertainty about the future of the Euro, what next is the question many investors will be asking and particularly those invested in pensions who are not too far off retirement.

The dilemma for those in pensions who are less than 5 years off taking retirement benefits is that over the last few years there is a good chance that you have seen your pension fund diminished significantly by stock market falls. As a result you may be considering putting on hold your retirement and keeping your pension fund invested in the hope of recovering lost value. For many however this is not an option and so you may have already moved all or a part of your pension fund into less risky assets such as government bonds or cash. 

Cash would appear to be a safe in uncertain times however with inflation running currently at over 3% getting maximum value on cash to maintain its real value is a challenge.  Many pension cash providers provide poor levels of interest and so finding providers that offer good rates is not easy. In the table below we have highlighted current pension cash deposit deals that should be considered.

5 Year Fixed Rate Deposit Plan

Scottish Widows Bank offer a 5 year fixed rate plan that currently pays 4.00% AER and is suitable for those in Self Invested Pension Plans (SIPPS) or Small Self Administered Schemes (SSAS).

3 Year Fixed Rate Deposit Plan

Scottish Widows Bank also offer a 3 year fixed rate plan that currently pays 3.50% AER and is also suitable for those in Self Invested Pension Plans (SIPPS) or Small Self Administered Schemes (SSAS).

Alternative Deposit Plans

If you are looking for a defined return that provides potential for better returns than a standard fixed rate bond then a structured deposit plan may be of interest.  The Investec FTSE 100 3 Year Deposit Plan is designed to be held for 3 years and will provide a potential maximum return of 17.25% as long as the FTSE is greater at maturity than the FTSE opening level at the beginning of the plan. Click here for more information.

For more alternative deposit plan options click here for more information.

Please note that you will need to check with your pension provider on whether these pension cash accounts can be accessed. If you are uncertain about what you should do you should seek financial advice.