Section 32 policy

ta7lor

I have an executive pension plan from a previous employer.The trustees of the scheme are about to wind the scheme up.I am being forced to lose money by being forced to transfer the funds .I understand that I can at least protect my enhanced tax free lump sum by transferring the funds into a Section 32 fund.Is there a website that shows comparisons of this type of fund to show performance ,charges etc. to help me decide which is the best fund to transfer to.

Alternatively, is there another way to deal with the funds once the scheme has been wound up that may help me mitigate the loss of fund value incurred by transferring from one company to another?

Many thanks.

mgdavid

'executive pension plan' gives the possibility of it being a substantial size pot, in which case in addition to any ideas and pointers from here you probably should be talking to an IFA.

mania112

EPP has no relevance to the Pot Size - just that it is setup by an employer.

Section 32 is a product, a wrapper in which your funds are held (and benefits from previous scheme maintained) - it doesn't describe an investment, so there's no way to know how it will perform.

Seemingly the [only] benefit transferring across to the S.32 is the availability of protected Tax Free Cash benefits.

Since April 2006, TFC has been limited to 25% of the pension pot. You have an older pension and so are potentially entitled to more.

I don't suppose you have a choice which provider is used for S.32 (there aren't many around anyway, AEGON closed there's recently).

Essentially, if the prospect of a high cash lump sum is a priority for you, select the S.32 option.

xylophone

http://www.scottishlife.co.uk/scotlife/web/site/Adviser/TechnicalCentralArea/Informationguidance/Transfers/PCLSprotectionontransfer.asp
Is this relevant to your case?