News

Protected Rights and SIPP's

28 October 2008

You are now able to transfer and invest your existing protected rights pension pots into a range of SIPP products^ from 1 October 2008 - crucially the first date this will be allowed under Government legislation changes.

The benefits of adding protected rights into SIPP include:

* Making investment and asset allocation decisions in one place, using the SIPP alone

* Investing protected rights money where you wish rather than being confined to a very limited range of investment options

* May reduce charges especially where protected rights are currently held in older contracts, or where the addition of protected rights gives a larger fund discount

* Reduces paperwork, time and hassle

* Easier to keep track and monitor fund performance

* Introduces additional choice and flexibility when you need to take retirement

income, offering our full range of drawdown options

The £100 billion opportunity

The ability to transfer and invest existing protected rights pension pots into SIPP provides advisers with a fantastic opportunity as Andrew Tully, Standard Life’s Senior Pensions Technical Manager explains:

“We estimate there is between £75 billion and £100 billion of protected rights funds currently held in defined contribution pension schemes which consumers might want to consolidate into their SIPP.

“This is often money which people have forgotten about and therefore is a great opportunity to make this money work as hard as possible for retirement. People will be able to make investment decisions and monitor progress of their retirement plans using their SIPP alone. It will make life easier for people by reducing paperwork while maximising the investment potential across their portfolios.”

Further information

For more information on this or any other Pension query, please do not hesitate to conatct us

^ Transfer of Protected Rights is not available to all SIPP's. Please contact us to discuss your personal situation.