Pensions advice - Eric Boardman

I have a 'frozen' pension with my previous employer(s) but the fund is not performing or I am worried about the integrity of the fund – what can I do?

Due to recent events in the equity markets and the inflexibility of most corporate pension schemes, the corporate pension has come under unprecedented pressure in recent years with many schemes collapsing entirely or only being a position to provide policyholders with a fraction of what they were promised.

As such, many policyholders wish to transfer the existing entitlements away from the corporate scheme.

One option that is provided by some corporate pension schemes is a commutation of pension rights. However, these should be considered very carefully before accepting as commutation is not usually in the policyholders favour.

A far better option may be to transfer your entitlement it to a lower charging, actively managed fund. The first stage in this process is to perform a pension transfer analysis. A pension transfer analysis is a free, no obligation, and impartial (regulated by the pensions office) service that informs you of the value of your pension and whether it is in your interests to move it to another pension provider. In 9 out 10 cases it is in your favour for one or more of the following reasons:

• It allows you to bring down the age when you can receive the pension to earliest age – currently 50.
• It 'unfreezes’ the pension and allows the plan to be actively managed again to ensure maximum growth.
• It allows you to increase your tax-free allowance to the maximum – 25% of the funds value.
• It allows you to transfer your pension funds into a policy with lower fees and charges – again increasing net growth
• It moves your pension funds away from a old employer – UK corporate schemes are getting a lot of adverse publicity at present

• You can invest in asset approved by the Inland Revenue; this includes equity funds, individual stocks and shares and property
• On your demise, your estate receives the remaining fund value – not the Inland Revenue as with a regular pension.
• In certain professions, you can take the tax-free lump sum before the age of 50 – with Inland Revenue approval

Candour Consultancy works closely with the leading providers of pension transfer plans and SIPPS. Candour can provide a UK Pensions Office approved analysis of pension transfer options free of charge and without obligation.

Useful links & assets

Candour Consultancy http://www.candourconsultancy.com