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
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
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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