Section 32 vs Personal Pension vs Occupational Pension. The clock is ticking...!

jayphil

Hi

I (like many others I expect) have various bits of company pension schemes that I belong to from old jobs as I have been working now for almost 30 years but wont hit 50 for another 5 years. I also have a SIPP but it became paid up some years ago.

Some 12 years ago, I became a consultant working through a HMRC-approved umbrella company but recently went back to being a FTE for 12 months & built a £15k transfer value in the company pension scheme (thru their plus my own contributions). I've left the company so now have to take the transfer value & re-invest. The pension company say I have options of taking an S32 buyout, a PPS or an OPS. I have gone back to consultancy working through the same Umbrella so was looking for more market-based options. I like Jupiter Unit Trust managers and prefer a European (non-UK) portfolio with low management charges.

Anyone have any possibilities or suggestions for what to do as I am on a time limit of Jan 21st to get the cash reinvested in a 'suitable' vehicle.

Thanks in advance,
Jason

dunstonh

All options could be suitable depending on the terms being offered. There is no rule of thumb and no one best option. Without facts and analysis there is no way to say which one is best for you I'm afraid.

jayphil

The more I look at the options, the more I think a Section 32 buyout is the way to go. My concern is that due to the strict controls (I can only go to a transfer-only product that can only accept one transfer from one pension scheme), I may not have a lot of choice in the marketplace.

BTW: Excuse my ignorance but would all the products I would be looking for be called "Section 32 buyout plans" or similar or do these also masquerade under any other name?

Thanks
Jason

dunstonh

My concern is that due to the strict controls (I can only go to a transfer-only product that can only accept one transfer from one pension scheme), I may not have a lot of choice in the marketplace.

There are not as many section 32 providers as there used to be. However, modern S32s offer better investment options than they used to. Not SIPP like but usually good enough.

BTW: Excuse my ignorance but would all the products I would be looking for be called "Section 32 buyout plans" or similar or do these also masquerade under any other name?

I dont know if you will find any DIY S32 plans. You have the generic name but a few do use different marketing names but they will identify themselves as S32 plans or buyout plans.

Its quite a specialist product and because it comes from a final salary pension scheme, it is treated as an occupational pension transfer and many, if not all, providers will want an IFA to sign off on it. Often scheme wind ups will have one made available to you without advice. However, it will be their choice of provider and their terms. That may or may not be a problem though.