Small pension pot - what are my options?

System

This discussion was created from comments split from: Pension need to knows Official MSE Guide Discussion.

Pettsvaldo

I'm wondering about my options regarding my risible pension pot.
I'm currently 52 and unemployed.
A couple of years back, I consolidate my miserable collection of pensions together using PensionBee. My total pot there, as of today, is about £31000.
Now clearly, that's a very small amount and it will provide a pitiful monthly stipend if I, in due course, were to transfer it to an annuity.
Should I just take the money out when I get to 55 or is there any rationale for an alternative solution?

dunstonh

Now clearly, that's a very small amount and it will provide a pitiful monthly stipend if I, in due course, were to transfer it to an annuity.
Should I just take the money out when I get to 55 or is there any rationale for an alternative solution?

If you don't have much, why would you go and spend it all when you are 55?
Why not save it until later and draw as and when needed (you don't need to take it as an income)

Pettsvaldo

Well, that's sort of my question - what are the options?

Maybe, as a lump sum - or, as a handful of smaller withdrawals at least - it might achieve something useful. As the basis for a pension, it feels pointless.

Marcon

Have asked the board guide to move the latest 3 posts to a thread of their own in the pensions forum - burying it 24 pages in won't get many answers!

MSE_ForumTeam5

We've split this into a new thread

( @Marcon - if you spot something like this, the best thing is to use the 'report' button and pick the 'needs moving, merging or splitting' option, as the Forum Ambassadors don't currently have the tools for doing moves/merges/splits)

xylophone

I'm currently 52 and unemployed.

On means tested benefits?

https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits

Have you checked your state pension position?

https://www.gov.uk/check-state-pension

Albermarle

Pettsvaldo said:

Well, that's sort of my question - what are the options?

Maybe, as a lump sum - or, as a handful of smaller withdrawals at least - it might achieve something useful. As the basis for a pension, it feels pointless.

However taking small sums from it at intervals, is actually taking a pension from it. Just not one with regular payments.
You are right that it is not a large amount in pension terms, but seems pointless just to withdraw it all now.
What would you do with it ?

Marcon

MSE_ForumTeam5 said:

We've split this into a new thread

( @Marcon - if you spot something like this, the best thing is to use the 'report' button and pick the 'needs moving, merging or splitting' option, as the Forum Ambassadors don't currently have the tools for doing moves/merges/splits)

Many thanks - I did indeed use the report button but added this comment on the thread to let OP know what I'd done!