Pension Transfer

A Buyout Bond (also known as a Personal Retirement Bond) is a pension arrangement that allows you to transfer your benefits from a company pension scheme into your own personal pension policy. This typically happens when you leave employment or if your company pension scheme is being wound up.

You might consider a Buyout Bond if:

• You’re leaving your employer and want to take control of your pension
• Your company’s pension scheme is being wound up
• You want more control over your investment choices
• You wish to consolidate multiple pension pots

With our Buyout Bonds, you get access to a wide range of investment options including:

• World-class index funds from providers like Vanguard and BlackRock
• Active and passive investment strategies
• Multiple asset classes (equities, bonds, property)
• ESG (Environmental, Social, and Governance) focused funds
• Cash funds for more conservative investors

• Complete control over your investment choices
• Access to competitive fund management charges
• Flexibility in retirement options
• No requirement for employer involvement
• Ability to pass on benefits to your family
• Access to professional investment managers

Generally, you can access your Buyout Bond:

• From age 50 if you’ve left the employment related to the original pension
• At normal retirement age (usually 60-65)
• Earlier in cases of ill health
• By age 75 at the latest

At retirement, you typically have several options:

1. Take a tax-free lump sum (usually up to 25% of the fund)
2. Purchase an annuity
3. Transfer to an Approved Retirement Fund (ARF)
4. Take a taxable cash sum

• The full value of your Buyout Bond will be paid to your estate
• Benefits are typically paid tax-free to your spouse/civil partner or dependents
• If paid to other beneficiaries, inheritance tax may apply

Common charges include:

• Annual management charges (varies by fund choice)
• Policy fees
• Fund switching fees (if applicable)
• Early encashment charges (if applicable)

No, a Buyout Bond or Personal Retirement Bond is a one-time transfer vehicle. You cannot make additional contributions after the initial transfer.

• Growth within the fund is tax-free
• You can typically take up to 25% tax-free at retirement
• Any additional lump sum or income is taxed at your marginal rate
• Benefits paid on death before retirement are usually tax-free to dependents
•  How do I monitor my investment?
• Regular statements will be provided
• Online access to view your fund value and performance
• Annual benefit statements
• Option to switch funds online or through us

While not mandatory, it’s highly recommended to seek professional financial advice before:

• Setting up a Buyout Bond
• Making investment choices
• Planning your retirement options
• Making any significant changes to your pension arrangements

For specific advice about your situation, please don’t hesistate to contact us with any questions you might have.