| answer text |
<p>A Section 32 buy-out policy is an individual contract between an individual and
usually an insurance company, purchased using funds transferred from an occupational
pension scheme.</p><p> </p><p>Such a contract can and may pay out before the age of
65 for a man. However, a Section 32 policy may contain a Guaranteed Minimum Pension
(GMP), and where it does, it must, as a minimum, pay a GMP from age 65 for a man or
60 for a woman, regardless of investment performance. Where there are insufficient
funds to pay additional benefits, a Section 32 policy may therefore pay out only the
GMP from these ages. This is a valuable guarantee, as it means that a person’s retirement
income cannot decline below the amount of the GMP.</p>
|
 |
