Less then £50 in pension pot. What are my options?

wagon_2

Hello,
I have just under £50 in one of my pension pots and my options seem to be limited as cannot :-

1.Take it as cash as am not over 55.

2. Unable to Transfer it to another pension provider due to the small amount of money to be transferred.

Only option seems to be to leave the small amount in the pension and accumulate more paperwork!!

Does anyone know of a better option??

Many Thanks

wotsthat

wagon wrote: »

Hello,
I have just under £50 in one of my pension pots and my options seem to be limited as cannot :-

Does anyone know of a better option??

Wait until you are 55, take 25% (£12.50) as a tax free lump sum and then live life to the full.

dtsazza

If you actually do want to transfer it somewhere else, then presumably you have another pension that you intend to be your "primary" one. In which case you could pay £1000 less into the primary pension over the next few months/years, put that money into your tiny pension instead, then transfer the whole bunch.

If you don't have any other pensions, you can take the whole £50 (+ investment growth) as a trivial commutation when you hit 60 (under current legislation, which may well change by the time you hit that age of course!).

Cyril

wotsthat wrote: »

Wait until you are 55, take 25% (£12.50) as a tax free lump sum and then live life to the full.

Sorry, I know its wrong but that so made me laugh.

Now how would you spend this £12.50 living life to the full as you'd need to be sure not to waste it

wotsthat

Cyril wrote: »

Now how would you spend this £12.50 living life to the full as you'd need to be sure not to waste it

I'd have a chicken tikka balti, pilau rice and a naan bread. It would be touch and go whether I could afford to eat in or have it as a take out though.

nomoneytoday

wotsthat wrote: »

I'd have a chicken tikka balti, pilau rice and a naan bread. It would be touch and go whether I could afford to eat in or have it as a take out though.

And a can of coke, full fat not Diet, to complete the meal

dasherman

dtsazza wrote: »

If you don't have any other pensions, you can take the whole £50 (+ investment growth) as a trivial commutation when you hit 55.

He has to wait until he's 60 to do that. But on the up side it might be worth a few more quid by then.

atush

Cyril wrote: »

Sorry, I know its wrong but that so made me laugh.

Now how would you spend this £12.50 living life to the full as you'd need to be sure not to waste it

I think a bottle of red (under 5 quid) and a take out would be living life to the full on that lol.


From DTSazza:


"If you actually do want to transfer it somewhere else, then presumably you have another pension that you intend to be your "primary" one. In which case you could pay £1000 less into the primary pension over the next few months/years, put that money into your tiny pension instead, then transfer the whole bunch.

If you don't have any other pensions, you can take the whole £50 (+ investment growth) as a trivial commutation when you hit 55. "

these are your options as I see it, but I would probably use fresh contributions to add to the old one rather than redirecting others.

Peelerfart

wotsthat wrote: »

I'd have a chicken tikka balti, pilau rice and a naan bread. It would be touch and go whether I could afford to eat in or have it as a take out though.

It's all very well you offering advice here but not one of you has even mentioned the investment potential of the remaining pot.

wotsthat

Peelerfart wrote: »

It's all very well you offering advice here but not one of you has even mentioned the investment potential of the remaining pot.

Quite right.

Let's say the OP is 40, inflation is 4% and an investment return of 8% can be achieved over the next 15 years.

That gives a pot (in today's money) of £88.07.

Take a quarter of that as a tax free lump sum and I reckon the OP can afford to buy a takeaway for him AND his wife as a retirement meal.

If an annuity was purchased with the remainder and he saved the income he'd be able to buy a takeaway for two about every 8 years.

JoeCrystal

Sorry but I have not seen wagon explained how on earth there is only £50 in that pension pot? Was it just one-off pension contribution or something?