Following its review into allowing early access to pensions savings, the government decided there is insufficient evidence that such a move would encourage saving.
Within weeks, a number of Pensions Reciprocation Plans (PRPs) appeared on the scene offering you guessed it early access to your pension fund. It seems that, whether or not early access encourages savings, there is a demand for it. Are PRPs the solution? Or is there a better option available under current legislation? PRPs are basically loanback arrangements. An individual transfers their pension into a master trust arrangement, which then invests part of the fund in a loan to another master trust arrangement. This second master trust then makes a loan to the investor. This av...
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