How safe are protected rights?

Protected rights may now be invested in personal pensions but advisers need to know what structures providers use in order to determine how safe and accountable client funds will be

Protected rights is the industry term given to the benefits derived from contracting out of the state second pension (S2P) - previously the state earnings-related pensions scheme (Serps). Many people have contracted out either by joining their employers' company pension scheme or by setting up a separate appropriate personal pension plan. The Department of Work and Pensions (DWP) has always been very concerned about individuals falling back on the state and this is one of the main reasons why they have not loosened up the restrictions on how protected rights can be invested. But all is set ...