Really, really small pension pots

xylophone

Considering my 8 years til retirement age...opening a SIPP, transfering £2880 of that account/year into SIPP (along with the £3k pension pots) would be a best option of greater return than the £20k sitting there, taking in the chance of maybe SIPP(share value losing/cost of admin etc)?

Transferring the £3000 to a SIPP would not add more tax relief.

However, adding £2880 per annum to a SIPP over seven years would turn your £20000 into £25,200. after tax relief.

Even if you kept it in cash rather than investing it, that is a far better rate of return than you are currently getting on savings.

HL  currently do not charge for opening a SIPP holding cash or drawing down.

If you added the £3000, you would have £28,200 and could draw this down in a variety of ways to minimise any tax for which you might be liable.

If you decided that you wanted to invest, you might choose  funds as suggested by the poster above.

This would involve paying fees but for a modest pot, these would not prove too onerous.

https://www.hl.co.uk/pensions/sipp/charges-and-interest-rates

Other SIPPS here

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions