SIPP closure

[1nvest]

Just wondering, what if a younger saver, say in their twenties, saved into a SIPP but where their choice of investments were lousy and they lost most of it, perhaps when just a few hundred £ remained they sold out and into cash and they contributed no more. After ongoing SIPP fees that presumably would be drawn down into zero/negative value at some point. Would the SIPP be automatically closed by the provider or would they be expected to continue to pay the ongoing SIPP fees forever thereafter?

[gpadsa]

About 10y ago I was auto-enrolled into a scheme (so not a SIPP but the OP has reminded me of a pension annoyance somewhat related to the topic), did £1k or two of work for the employer so there was only approx. £50 in the pension fund. I think the employer made a mistake unless the auto-enrolment rules were different at the time - I was unaware that I had been enrolled (nothing in the payslips) until I received a letter from the pension provider several years later. Actually the more I think about it, the more dodgy/shoddy it was. Anyway the scheme provider charged a monthly flat rate of £2 and when I found out about the account there was only £4 left. Then the scheme changed its rules so it would only charge the flat rate for balances above £100. Currently I have £1.16 in the account and receive an annual email advising me to log into the account to check that all my pension wishes and preferences have been indicated correctly

gpadsa

[1nvest]

Unless you can close such cases, could foresee a situation where a debt might have Court Orders and bailiffs becoming involved. Owed say £10, another £200 for a court order and another £400 for the bailiffs



I assume that below a certain level such pensions accounts could be closed, but can't actually find anything in support of that assumption.