Many individuals will have pension rights that have accumulated over a number of years and, in those years, changes in employment or other circumstances will have shaped their pension arrangements.
Some may have paid-up pension pots, commonly known as “Section 32 Contracts” or “Buy Out Bonds”, which carry rights to a lump sum pay out of more than 25% of the pension value.
If you, your employees, or contractors have these sorts of pension rights then you have a temporary opportunity to consider transferring to a more modern pension arrangement. That might allow access tax free cash at the enhanced percentage but at the same time dispense with the need to buy an annuity with their inherent limitations on flexibility.
If you are interested then you will need to act before April in order to benefit from the freedom and choice afforded by pension reform without losing the enhanced lump sum entitlement attaching to any paid-up pension pots.
If you would like to talk further about the pension reform changes, please contact us on 0845 606 9632.