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freedom bond with profits
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tractor22
Posts: 1 Newbie
I have a freedom bond with profits due at retirement age in September and am told by Phoenix ( Pearl ) that it still needs to buy a pension and that I cannot have cash lump sum , can someone on here please advise .
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Comments
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The Pearl Freedom Bond is a section 32 buy out bond. it is not a personal pension.
It can have a number of guarantees, protected by statute, one of which is that if the fund is insufficient to meet the guaranteed value, the insurer is still liable to pay that amount.
Phoenix wont be updating any of their legacy plans to meet the new requirements (bar possibly a few of the easy to change things) and section 32 buy out bonds are not designed to work like a personal pension.
It is possible to transfer a S32 to a personal pension and give up the GMP. Whether it is sensible to do so or not will depend on the terms. There are also potential consequences to your state pension if you do this. So, its not something you should do lightly.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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