The Lemon Fool

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?

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

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.