IFAs urged to review contracted-out pensions

Pension providers are currently writing to IFAs regarding their clients' contracting out decisions and questioning whether clients ought to consider either contracting back in or remain outside the State Second Pension (S2P). However, L&G suggests IFAs also consider ‘re-pensioning’ their clients’ existing pension pots to a provider with a tiered annual management charge, which reduces as funds grow. This would provide lower fund charges and aid growth in larger pension fund, according to L&G, as a person with a contracted-out pension pot worth £24,000 - who also pays ongoing gross lev...