Policies Started Pre 27th July 1989 (Pre Royal Assent)

Plans taken out between 30th June 1988 and 27th July 1989 may result in a higher or lower tax free lump sum depending on your circumstances. Up to a quarter of the fund can be taken as a tax free lump, similar to a personal pension started today. However, any protected rights** fund built up may also count towards the overall fund value in calculating the tax-free lump sum, with a maximum lump sum of a quarter of the value of the overall fund or the Non-protected rights fund.

** The pension fund built up by contracting out of SERPS, S2P into a personal pension is known as Protected Rights

Large Fund Sizes

There is an additional overall maximum of £150K tax-free cash per arrangement, therefore in the case of a large fund, by transferring to a new provider you may enhance the size of your tax-free cash at retirement.