Read the latest Taylor Patterson company news, or news relating to bespoke pension arrangements .
Preston-based financial services firm, Taylor Patterson, say that the relaxation of rules in April 2012 gives pension savers more choice over how they can take their retirement income.
Kerry Houghton, business development manager at Taylor Patterson said: “Protected rights benefits will have been accrued by employees who previously gave up their entitlement to a State Earnings-Related Pension in exchange for a National Insurance Contribution rebate into a pension of their choice.”
Prior to 6 April 2012, those with protected rights were unable to make full use of their options for retirement income due to restrictions on how the benefits could be taken.
"Many providers didn’t allow protected rights before. Now that the restrictions are lifted, protected rights are considered in the same light as other pension savings. This gives people more flexibility to manage their entire pensions pot and means there are more options available to take retirement income.
“For example, funds can now be amalgamated to utilise full options under income drawdown as an alternative to taking an annuity at retirement.
"Income drawdown is more flexible than an annuity which provides a secure retirement income in exchange for your pension pot, however it is higher risk.
Kerry added: “Income drawdown is complex and we recommend you speak to your adviser to make arrangements that best fit your financial needs”.
For further information on protected rights and income drawdown, contact Taylor Patterson on 01772 555073.