Section 32 Plan

Also known as a Buy-Out Bond, this is a special type of personal pension plan which is set up to accept transfer values from occupational pension schemes.

They can be useful if you've left an occupational scheme and left a pension behind. In such circumstances it can make financial sense to move your pension pot and/or you might choose to do it because you'd rather make aclean break with your former employer.

This is a complex area - get specialist help from an IFA in the first instance.

See Also: Pensions & Retirement Centre Pensions Glossary

Last Updated: March 2008 © Moneyextra.com

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