SIPPing into Protected Rights

On the 1 October, the Government introduced some hotly anticipated changes to the pensions system. Self-invested personal pensions (SIPPs) are now able to accept transfers of 'protected rights' from S2P/SERPS schemes - money built up when savers contract out of the state second pension. According to the Financial Services Authority some eight million people have contracted out of S2P/SERPS since 1987. It is estimated that as much as £350 billion could be up for grabs - about £100 billion is in protected rights in personal pensions, with a further £250 billion sitting in contracted-out final...