NEST small pot question
I have approximately £5,000 in a NEST defined contribution pension from a six-month job I had about 4½ years ago. I haven't made any contributions to that pension since leaving the role.
Most of my career has been in universities, including my current position, so my main pension is with USS. That's my long-term retirement pension, and I have no intention of touching it before I retire.
I'm now 55 and would like to withdraw the £5,000 from the NEST pension and close the account. I understand that 25% should be tax-free and that the remaining 75% will be taxable. My plan is to invest the money in my Stocks & Shares ISA, where I think it has better growth potential.
My understanding is that, because the pot is under £10,000, withdrawing it under the small pots rules shouldn't trigger the Money Purchase Annual Allowance (MPAA). I've contacted NEST, and they're sending me written confirmation that the withdrawal would qualify under the small pots rules. I won't proceed until I'm confident it won't trigger the MPAA.
I'm mainly interested in hearing from anyone who's done something similar. Was the process straightforward, or did you run into any unexpected issues?