I am wondering what is the best thing to do with a small pension fund I have that has lain dormant with HSBC for many years. I am just approaching 65 and they are pestering me (as they must) to tell them what I want to do with it.
It only amounts to something just over £5000 so, if I buy an annuity for example, it will only return £50/month or so I think.
We have no debts, we have various other odds and sods of savings like some ISAs and a couple of other (larger) pensions. With the current economic downturn our earnings are somewhat reduced at the moment and, while we don't forsee any serious financial problems, it probably isn't a good idea to lock this £5000 away for a long time.
So, what should I do with it, the main choices as far as I can see are:-
Leave it where it is to do basically nothing (I'll have to decide when I'm 75 of course but that's a while away!).
Take it out as a lump sum (a 'triviality') and invest it in something that will produce a bit of a return.
Buy an annuity with it (and/or add it to some other savings to buy a bigger annuity).
Any comments and ideas would be most welcome.