Recently we’ve been receiving many calls about Section 32 Buy Out Pensions.
What is a Section 32 Buy Out Pension?
Section 32 Buy Out Pensions appeared in the 1980s as part of changes to the Finance Act 1981. And in particular Section 32.
During this time you could also opt out (called “contracting out”) of Additional State Pensions.
Section 32 Buy Outs were often the default arrangement when a pensions scheme was winding up. Or if you left your job and therefore the associated workplace scheme. So you may have one somewhere even if you don’t remember opting in.
Why review a Section 32 Buy Out Pension?
We often find that people have never reviewed their Section 32 Buy Out pension and so it may be old and out of date. For this reason, you may discover that the arrangement no longer matches your attitude to risk or that the fund isn’t performing as well as you had hoped.
Also, many Section 32 Buy Outs have a very high level of Tax Free cash. If it does, it’s likely we will advise you to leave it where it is and not switch it. But without reviewing it you won’t know.
Today there are several options for your S32 whether you keep it, consolidate with your other pension, or even take out a cash lump sum. If you’ve got an old S32 please give us a call to have it reviewed. Across all our pensions, in about 7 out of every 10 cases, we can get you a better deal.We can even help you track down any S32 you may have lost track of.