Clustered pension plan allows members to protect tax-free allowance after A-Day

Winterthur Life has launched a clustered Section 32 pension plan to allow occupational scheme member...

Winterthur Life has launched a clustered Section 32 pension plan to allow occupational scheme members with a tax-free lump sum over 25% of their fund to maintain this after A-Day next year. The plan then enables clients to phase the benefits when they retire without losing their allowance. Post A-Day, the maximum tax-free cash will be 25% of a fund, meaning people would lose any higher allowance if they transferred out of a scheme. If someone moves to the clustered plan pre A-Day however, they can create up to 50 identical policies to protect their higher tax-free cash, then vest whole p...