SIPPs & Contracting Out - Proposed changes

The DSS have issued a consultation document this month in which it has been proposed that the rules governing contracted out (or protected) rights are to be relaxed. The two significant proposed changes are:-

1. that contracted out rights will be able to be transferred to a SIPP and
2. the requirement to purchase a 50% spouse's annuity out of the contacted out rights' funds is to be abolished, thereby increasing the level of income available to the individual.

These proposed changes will allow greater flexibility regarding investments and how the benefits are taken. We will continue to monitor the position and update this site as news becomes available.