Jun 22 2007
The Alliance Trust has called for funds accumulated by consumers through their "protected rights" national insurance rebates to be made eligible for transfer to self-invested personal pensions (Sipps).
It is claimed that the restriction on consolidating pension fund in to a single Sipp account is a "source of great frustration" for many people looking to secure a sound financial future.
The national insurance rebates were granted to those people who "contracted-out" of a second state pension, but the Alliance Trust insists that the restriction on transferring these funds to a Sipp now has "little merit".
Hyman Wolanski, head of pensions at Alliance Trust, commented: "The industry was hoping that these rules would be removed from April 6th 2007, when Sipp administration became a regulated activity, but this was not to be.
"Alliance Trust is committed to allowing protected rights to be held within our Sipps as soon as the government changes its rules to allow this."
A full 14 per cent of UK adults now fear they will never have enough financial security to retire, according to recent research from Prudential.
