D-Day for Protected Rights

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Today is the first day that around £100bn of protected rights money currently sitting in insured funds can be consolidated into a registered pension scheme including a SIPP.

Protected rights are funds built up by being contracted out of the State Second Pension with average pot sizes around the £30,000 mark. Before today, the funds had to be invested separately but the rules have now been changed so this money can be moved into existing pension plans. Many SIPP and pension providers have been gearing up for today for some time; setting up systems to allow advisers and clients to submit applications in advance to move protected rights on October 1. However, although today presents huge opportunities for advisers as their clients decide how to invest the...

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