Advice on Section 32 Buy outs

Section 32 Buy-out Policies

These are sometimes referred to as pension transfer plans. A Section 32 buy-out policy enables you to transfer the funds and benefits of your occupational pension scheme into a private plan without losing the range of benefits available to you in your original scheme. Plus it allows you to make your own investment decisions if you wish in the same way as you can in a personal pension.

Because the investment decisions and choices are made for you with an occupational pension scheme, you can use a Section 32 Buy-out Policy to move to a personal pension plan and enjoy greater choice. However, unlike a personal pension plan, monthly contributions into the scheme are not allowed after the transfer. You will only be able to make a single transfer into the scheme. For this reason they are often used to tap into frozen or existing company pensions.

You need to ask the for the full transfer value from those running the pension scheme you want to transfer out of or you can get an independent advisor specialising in pensions to ask for the transfer values of any schemes you want to move and to organise it all for you.

Pensions

Section 32 Buy-out Policies

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