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
