What to do with a newly discovered but tiny private pension?

stripling

molerat said:

Do you not play the £2880 in £3600 out SIPP game every year ?  You could transfer it into that.

I've just been reading up on this - but I need to figure out how to run it as self-managed and whether it's worth it over a relatively short term. One little small fry thread and I'm learning a whole new language. Thanks everyone for this huge rabbit hole. 🐰 😁

xylophone

I am now one year past retirement age. 

And how old is that?

but I need to figure out how to run it as self-managed and whether it's worth it over a relatively short term. 

Let's say you are aged 67 and have no relevant earnings. Up to age 75, you may contribute up to £2880 (net) to a personal pension and receive tax relief of up to £720.

Let's suppose that you open a SIPP with (for example) Hargreaves Lansdown.

You make your contribution and  receive the tax relief.

You ask HL to arrange the transfer in of the tiny pension.

Now what do you want to do?

Is it simply to take the 25% PCLS and the balance as taxable income?

Or do you want to invest the money and perhaps continue with this up to age 75 and make your decision then?

Or do you just want to leave cash within the pension, regarding the TR as "interest" on savings?

Marcon

stripling said:

Out of the blue I received a letter from Now Pensions telling me to 'log on' to their website and check my statement. 
I have never heard from them before, I never gave them my address.

That could be why you've never heard from them. They've obviously done some tracing now you've reached a certain age...

stripling said:

My statement says there's £175 in the account, but there's no information as to how I can get it or what to do with it. Now Pensions have helped themselves to £25 a year for 'handling' (3% + a random figure so it appears). 

If you can't work out how the charges are calculated, ask them.

stripling said:

This will have come from a media company I worked for that was forced into paying a pension just before I left in 2013. Up until then they deliberately kept employee numbers below the amount to be classified as a business big enough to contribute.

I imagine they had rather more important considerations than just that!

stripling said:

The statements only go back to 2019.  If I had known the money was there I would've removed/transferred it.  I am now one year past retirement age. Now Pensions suggest an 'annuity' to earn £8 per year. Obviously, that's a waste of space but.... 

What can I do to retrieve this money? 

Just ask to cash in the lot.  Unless you're planning to contribute more than £10K per year to a pension (including tax relief), it doesn't matter whether or not you do it as a 'small pot'.