What to do with small pension fund?

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.

Reply to
tinnews
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In message , snipped-for-privacy@isbd.co.uk writes

I'd take the lump sum and add it to savings.

A few years ago I had a similar experience with a Ferranti pension dating back about 40 years, and they pestered me about it. It amounted to £12 per annum, and I thought about taking the lump sum offered of about £200+.

However, when I studied the application forms and found the requirements/conditions to be ambiguous (or beyond my comprehension!) I just couldn't be arsed, and let it die.

For £5000 I would have taken the trouble to grab it, even if I had to get an IFA to sort out the application. ;-)

Reply to
Gordon H

Given where we are with inflation, energy security and the exchange rate another option may be worth considering: take it out as a lump sum and buy tins of baked beans, tools, extra-warm clothing and duvets, more tools, .........

Reply to
Robin

In message , Robin writes

... like an AK47.

Reply to
Gordon H

Take it out as lump sum, and buy gold and silver with it. That's money that won't lose its value over the long term.

-- Albert

Reply to
Albert Koelmans

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