Enhanced Protection

Published by Bhargaw Buddhdev, Lisa Lawson on

We were asked to advise a Managing Director of a leading global company who was expected to lose Enhanced Protection because of on-going benefit accrual.

The pension issues were complex and required an urgent decision on whether to surrender Enhanced Protection in favour of Fixed Protection.  We were able to mitigate the potential tax liability by advising on the merits of drawing benefits in two stages (split crystallisation) whereby Enhanced Protection was retained.

Benefits

This improved the value of the expected benefits at retirement significantly, whilst maintaining provision for life cover and dependants’ benefits.