There are two types of pension protection you can currently apply for: Individual Protection 2016 and Fixed Protection 2016. Each type provides a different form of protection and therefore requires different information in order for you to apply.
You can apply for Individual Protection 2016 (IP16) if your pension savings were worth more than £1 million at 5 April 2016. In order to apply you will need to contact all of the pension providers with whom you held policies as of 5th April 2016 to obtain their value on that particular date. The total of all amounts is the “relevant amount”. Where this is greater than £1.25m, the protection is capped at £1.25m. Where the relevant amount is between £1 million and £1.25m, it becomes the personalised protection amount. Where it is less than £1 million, IP16 is not available.
Whilst there is no official closing date for this pension protection it is worth noting that the statutory obligation on pension scheme administrators only applies for four years. This means that administrators are only obliged to provide the information you need until 5th April 2020, after that it’s at their
discretion and they can’t be made to do so.
To be eligible for Fixed Protection 2016 (FP16) it is a condition that no individual or employer contributions have been made to your pension arrangements since 5th April 2016. Whilst there may be data gathering required to find out this information, it should be much less onerous to access than IP16.
As you can imagine, this restriction on data release could prevent you from being able to apply for the protection you may be eligible for in the future. So, if you think you might qualify then please get in touch and we can help you put together your application.
Redwood Financial is one of the south’s leading Investments, Pensions,Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning, Lasting Powers of Attorney, Probate, Pensions, Savings & Investments, we can advise on any situation. Come along to one of our FREE Public Seminars on Wills, Trusts & Estate Planning. Book online at Book Me A Place!: call us on 01489877 547 or Email info@redwoodfinancial.co.uk.
