Don’t dismiss your small pension pot as ‘too small to worry about’ it may not be a huge amount of money but its still worth while getting the most you can from your pension. A £10k pension pot can take some people many years to save for so to dismiss those savings doesn’t do justice to the time and effort involved in saving for them in the first place.
Going through this site you will see that advice has been the prime driver behind its ethos, this does not change for small pension pots. Although you may think that just going with your pension providers offer will be quick and easy and simple, you may find that this is not the case at all. You would shop around for a high value purchase such as a TV or computer so why not do the same for your pension?
Use the Open Market Option in these circumstances and find the best annuity rates. You will find that you are likely to receive on average around 20% more income and this could rise by 40% in total if you qualify for enhanced rates. Cost of Advice is relative to the amount of your pension pot, so it will not cost you the same as someone with a larger pension fund.
Always seek specialist independent retirement advice when looking at your pension requirements.
