What can I do with my Small Pension Pot under £30k
1 – Stay with your current provider, its easier.
This is a common theme amongst people with smaller pots, stay with the provider its just easier. This depends on what you think is easy, if its easy to return your forms to your provider than it is to do a quick internet search and speak to an adviser and send the documents to them instead then fair enough. Although you are likely to be getting this pension for another 25 yrs, a small difference of say £100 in your yearly payments over that term can provide for a few good holidays. Getting that extra £2500 for making a few phone calls and doing a bit of research is worth doing and that is only on a small scale, the potential extra income could be £300 – £1000 per year and that will soon add up.
2 – Triviality
If all of your pension schemes, that is current ones in payment and any other schemes you may have at all are less than £18,500 then you can take the full amount of the scheme as a lump sum. 25% of which will be tax free the rest will be payable minus your highest current rate of income tax. This option is useful mainly because £18,500 is not going to get you much of a pension so its usually more useful to have the money in cash to do something with. This is something your current provider will be able to facilitate for you.
3 – Go to the OPEN MARKET
This is always the best thing to do and the common theme that we come across is that people find it hard work because many firms do not like to deal with small pots because there is not much in it for them. At RetireRight we have found that we are still able to offer market leading annuity rates that work for us as a firm and for the customer. We urge all people coming up to retirement to search the open market for the best annuity rates as they will be making sure they are getting the most income for themselves in retirement. Annuities are a simple product if you know what you want and ultimately all you then want to do is get the most income. Try RetireRight out today and you will find some of the best rates available on the market to date.