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Brewin Dolphin: Auto-enrolment threatens pension protection
by Robert St George on Nov 05, 2013 at 15:24
Fixed or enhanced protection on pension pots will be lost if holders are in auto-enrolment schemes for even one month, according to national wealth manager Brewin Dolphin.
Both forms of protection are subject to strict rules, which will cease to apply if any contribution is paid to any one of the holder’s money purchase pension pots or if the holder starts saving in a new pension pot under an existing or new pension scheme.
‘Those affected will already have either fixed or enhanced protection in place,’ commented Nicholas Oliver, divisional director at Brewin Dolphin Financial Planning. ‘These forms of protection were designed to protect those who had accumulated significant values in their pensions against future punitive charges.’
Individuals must notify their employer within one month of being auto-enrolled if they wish to opt out of the scheme. Employers will try to re-enrol their workers every three years, so those affected will need to continue to opt out.
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