Our Buyout Bond (BB6)
A Buyout Bond is designed for you to invest savings currently held in either:
- an occupational scheme where that employer has decided that they no longer wish to run the scheme and effectively wish to buyout your entitlement under the scheme; or
- an existing Buy-Out Bond contract where the investment choices and/ or the retirement income options may not meet your longer term plans.
The Old Mutual Wealth Buyout Bond not only protects valuable entitlements that may be included in the transfer, such as a tax-free cash entitlement that is greater than 25% of the fund value, but also gives you access to a variety of retirement income options, other than just the purchase of a lifetime annuity. The Bond can only hold a single transfer value. Other transfer payments, or contributions from you or your employer would have to be paid into a separate pension such as an Old Mutual Wealth Collective Retirement Account or Personal Pension.
The money transferred to your Buyout Bond is invested as decided by you and your financial adviser, giving it the potential to grow over time. If you want to hold the pension savings beyond age 75 you will need to transfer the funds in the Bond to another registered pension scheme, either with Old Mutual Wealth or another provider by that age.
Our Buyout Bond is only available through financial advisers. Here are some further details you need to be aware of.
- The Bond, like any registered pension scheme, is a long-term investment. Normally you won’t be able to access the money until at least age 55.
- As with any investment product, the value of your Bond could go up or down. It could be worth less than you paid in.
- The value of your Bond, in the event you die before drawing benefits can normally be paid as a tax-free lump sum into a trust to avoid the payment being potentially subject to Inheritance tax.
- Our Bond can only be used to accumulate pension savings – you can’t take income from it but you can transfer your savings to a different scheme when you wish to take income whilst protecting any higher tax-free cash entitlement that applies to the transfer.
If you invest in an Old Mutual Wealth Buyout Bond, you will get access to our investment technology enabling you and your adviser to hold, monitor and manage your Bond - and any other fund-based investments you have with Old Mutual Wealth. So as your circumstances and goals change, you can change the investments held in your Bond accordingly.
The content of this site does not constitute investment advice and should not be construed as such.