Section 32 Buyout Contracts
The guaranteed financial solution that came with hidden risks too high for cautious investors.
Common problems with Section 32 contracts (also known as Pension Buy-Out Bonds) include:
- Lower benefits than the previous employer’s pension scheme would have paid (this is often the major complaint and claim).
- Investors can’t draw benefits ‘early’ (usually 65 for males, 60 for females).
- No Tax-Free Cash when benefits start to be taken.
- No possibility of a transfer to an alternative pension.
Often sold because they include guarantees, but the hidden risks and restrictions often prove too high for most people. Perhaps you should have left your pension benefits where they were? Contact us to consider a claim for compensation. Time limits may apply.
However, it may still be possible to claim compensation if you are already drawing benefits from a Section 32 contract or if you have transferred away to an alternative pension policy.