Winterthur Section 32 plan

If your client has any existing benefits in an occupational pension scheme they can leave them there or transfer them to a personal arrangement such as a Winterthur Section 32 plan.

If your client decides to transfer to a Section 32 plan, the Trustees of their existing occupational pension purchase the plan for them. The plan is issued in your clients name and they, with advice from you, will control the investments and decide how and when to take their benefits, subject to HM Revenue & Customs (HMRC) rules.

By saving for retirement through The Section 32 or The Self-invested Section 32 your client can build up a fund that will provide them with benefits in retirement.

It is important to be aware that by transferring to a Section 32 your client is giving up all their benefits within the occupational pension scheme. This may include discretionary or guaranteed benefits and discretionary or guaranteed increases in their final benefits. In addition, in some circumstances they may receive a lower tax free lump sum. Professional advice should be sought before making any decision to transfer.

If your client transfers to a Section 32 plan, the size of your clients pension fund and the benefits it provides in retirement will partly depend on the investments they choose. When deciding where to invest your client should bear in mind that the value of funds can go down as well as up, and the benefits they receive may be worth less than those they would have received from their occupational pension scheme.

Independence
Your client’s benefits are no longer linked to their employer. Transferring to a Section 32 plan puts your client and you in control of their retirement planning.

Contribution flexibility
Once we have received the transfer from your clients occupational pension scheme, your client, their employer or a third party can make single or regular contributions to their pension plan and stop, increase, or decrease payments without penalty.

We do not impose a minimum contribution limit, so your client can choose how much to invest, subject to your contributions being tax relievable.

Investment flexibility
By transferring to Winterthur's Section 32 plans your client can access the Tailored Selection and Elite Fund of Funds Range. The Self-invested Section 32 also offers access to a broader range of permitted investments.
It is simple to switch between plans, so your client can select the most appropriate level of investment sophistication for their retirement objectives.

Retirement flexibility
Winterthur has a range of options providing your client with flexibility over how and when they take their benefits.
Your client does not need to decide how they wish to take their benefits until they are ready to take them, subject to HMRC rules.

Your client cannot access their benefits until age 50 (age 55 if not taken by 6 April 2010).

Transparency
Clear and transparent charging structures, with no penalties if your clients choose to vary contributions, retire early or transfer to another provider, although they may incur charges from the receiving scheme if they transfer.

Want to know more?

For more information please log in to our dedicated Winterthur Adviser Extranet or talk to your Business Development Manager. You could also take a look at our product key features and product literature which is available on request.