Glossary · UK
What is Section 32 Buyout Policy?
An individual insurance policy used to receive transferred benefits from an occupational pension scheme.
Full Definition
A Section 32 buyout policy (named after section 32 of the Finance Act 1981) is an individual pension policy that can accept a transfer of benefits from an occupational pension scheme, historically used when a scheme was winding up or a member left service. Some older Section 32 policies include valuable guaranteed features, such as a Guaranteed Minimum Pension or a guaranteed annuity rate, which can be lost on transfer — so specialist advice is generally required before moving one.
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.