With the poor stock market performance over the past three years, you could be forgiven for wondering how long a recovery will take. But, the bad performance and poor returns could be good for people with Executive Pension Plans.
For people investing in Executive Pensions that want to transfer to Personal Pensions, certain tests have to be undertaken to see if the Inland Revenue will allow a transfer. Currently, if you are over 45, earn more than a certain amount and are, or have been a controlling director in the past 10 years, your proposed transfer has to be tested. The test ensures that people do not transfer a fund value greater than that allowed under personal pension rules.
With fund values at lower levels because of the stock market, many people who were previously denied a transfer could now have the route reopened.
Our View:
If you have Executive Pension Plans or any other type of pension and wish to transfer or review them, for whatever reason, contact us for guidance or advice.
Get more ideas for business owners and directors in the Pensions Adviser.com or visit the Business Growth section in the Accounts Adviser.com .