The need to trace pension monies is becoming more and more acute

Increased worker mobility, separation and divorce and the high profile collapse of some large company pension schemes. This is the reality of the world we are operating in and something that we are seeing an increasing number of queries about in recent months. The days of being in a job for life and paying into your company pension scheme for 40 years to receive a pension at the end of it all are long gone. In these changing times, employees require a wider range of pension options that allow them to take control and put their pension to work for them.

A recent survey in the UK found that almost a quarter of employees have lost track of one or more of their workplace pensions. This was attributed to the increasing number of jobs that an individual will have in their lifetime and the number of small pension benefits that may be built up and forgotten about. It was also in some cases down to the fact that people could not locate paperwork to claim these benefits when the time came. Having one place where you can hold all of your pension benefits together and take control of them is a solution that would appeal to many clients and their advisors.

The buy out bond is a natural fit for those who have already demonstrated a desire to take control of their circumstances. A self-administered buy out bond can provide a greater level of control by allowing the client along with their advisors to direct how the funds are invested. In a group company pension scheme, the individual members have little or no control over the investment strategy. A self-administered buy out bond would allow the individual together with their advisors to create an investment portfolio that meets their specific needs rather than meeting the needs of a large group of members all with differing requirements.

While a buy out bond can only accept benefits from one pension scheme, it may be possible to set up a number of individual self-administered buy out bonds in the one place and use those buy out bonds to co-invest in a product or to purchase a property, for example. While the benefits can not be merged, the funds can all be used to create a portfolio of investments of the client’s choosing.

The flexibility offered by a buy out bond together with the level of control it gives to individuals make it an attractive option for clients and their advisors in these ever changing times.

Written by Jennie Faughnan

Independent Trustee Company has recently launched their new Buy Out Bond. To find out more about ITC’s BOB download our Brochure & Terms and Conditions.

For further information contact our team to discuss:

Michael Keyes (01) 614 8045 / michael.keyes@independent-trustee.com

Sean McLoughlin (01) 614 9220 / sean.mcloughlin@independent-trustee.com

Martin Glennon (01) 603 5130 / martin.glennon@independent-trustee.com