When you leave a job, you have to decide what to do with the pension benefits you have built up in your former employer’s pension scheme.
You can leave the benefits to grow in that scheme until you retire, although at retirement you may have to go back and contact your former employer to gain access to your pension benefits. You can transfer your benefits to your new employer’s pension scheme if you are joining the scheme, or you can transfer your benefits to a Buyout Bond, or a series of Buyout Bonds in your name.
You can consolidate your pension benefits from the various jobs you have held throughout your career into Buyout Bonds, which you own and control. The value of benefits you have built up in a former employer’s pension scheme are calculated and this ‘transfer value’ is then paid into your Buyout Bond.
Once in the Buyout Bond, the transfer value is then invested in a fund or series of funds. Because you control the Buyout Bond, you choose how to invest this money and when to draw on it. If you leave your pension benefits in your former employers schemes you have no control over how the funds are invested.