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'Protected rights' pensions allowed to move
30 September 2008 14:14
Pension savers with funds in restrictive 'protected rights' products will soon be able to move their money elsewhere.
From October 1st, individuals who have saved money in protected rights schemes will be able to switch funds to a self invested personal pension (Sipp).
Giving you wider investment options than standard personal pensions, SIPPs allow individuals to place their funds in shares, commercial property, unit trusts and other open-ended investments.
Catherine Penney, of Barclays Stockbrokers, said that from an investor's point of view the new regulations that allowed the transfer of protected rights into SIPPs were entirely positive.
She added that it would give people the opportunity to invest their protected rights fund into a wide range of products, with something to suit every investor.
In 2007, nearly £100 billion in pension funds was moved between schemes, and it is expected that tomorrow's change will increase the competitiveness of financial products already on the market.
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