Do you have a protected lump sum held in a Section 32 buyout bond?
Do you have a paid-up pension pot that is protecting a lump sum entitlement of more than 25%? Such schemes are typically known as ‘Buy-out Bonds’ or ‘Section 32 Contracts’ and were historically established when you left the membership of a company sponsored pension arrangement e.g. when changing jobs or moving to your employers’ new stakeholder pension arrangement.
If this sounds familiar, the temporary relaxation in ‘block transfer’ rules could provide you with an opportunity to access your protected tax free cash now, without being restricted by the limited income options of an annuity in retirement.
Now you can get the best of both worlds by transferring to a more modern contract before April 2015. This will allow you to benefit from the new ‘pension freedom and choice’ at retirement without losing the protected lump sum entitlement and having the ultimate flexibility as to how to draw your retirement income.
If you would like to speak with a pension specialist to discuss what this could mean for you, please contact Provisio on 01462 687337.