Small pension pot - what do I do with it?

houndtang

I have a tiny pension pot of about £2000 which I was paying into for a short time. Payments to it have now closed as my employer has switched to a new pension provider.

What do I do with the old one ? Should I leave it or transfer it to the new one? Thank you.

MallyGirl

it depends ...
what are the charges like? what is it invested in?

Albermarle

Due to the small size of the pot , it makes sense to transfer it just to keep admin down .
However as already said check out the charges .
in any case there is no rush , you can always transfer later . Just make sure you tell them of any change of address..

squirrelpie

Sometimes there are time limits for transfers in to work schemes, so it may not be possible to transfer later. Do check the scheme rules before deciding to delay.

houndtang

Thanks all. It’s invested in Standard Life pension fund and charges are 0.78%

MallyGirl

so not horrendous charges. For the small amount of money it probably makes for a simpler life to transfer it into the new one. Otherwise in retirement you will just be getting piddly little income payments and you will have had to update them every time you move in the interim.

houndtang

Thanks that was what I thought