Pension advise required - SERPS
 

Probably about 12-15 years ago I was persuaded to contract-out my SERPS amounts to L&G.

Have been doing so ever since, but now they have sent me a letter asking if i want to stay contracted out. I have another seperate pension with my employer, which both the company and I pay into every month.

The letter L&G have sent states "If you wish to maximise the pension you can expect to receive at state pension age, then you are more likely than not to achieve this by contracting back into the State Second Pension".

I don't pay any money out of my wages to L&G, only an amount to the same company my employer pays into (which i think is Standard Life, not sure).

Help! Know very little about pensions so any advice would be appreciated.

Cheers

oobster

bttt

Had the same thing with my Co-operative pension and after independant advice have opted back in.

GB

I don't understand it all. I have done the same when I had a company pension about 14 years ago. Didn't understand it then, still don't :)

ok....simple terms:

SERPS is an "bit extra" that the Gov give you to add to your pension. (they dont "Give" it to you, they hold it until you are old and wrinkly......unless......

Years ago pension providers suggested if they looked after your bit extra, and you were young enough for them to hold it for a while, you would be better off.................so everyone contracted out, the pension companies held the money instead, and the advisers who said do it got paid enough for a new filiofax.

Now it turns out the funds didnt grow as suggested so you may well have been better of staying with the Gov looking after your bit extra......also an adviser wouldnt earn enough for filofax insert now so no one gives a toss - hence the advice is contract back in and rely on the Gov not the pensions firm.

all very boring.

Aargh dont get me on pensions. Went through all my paperwork yesterday as I seem to get something sent every frigging month. Am on my 4th pension and have only worked for 1 company since leaving Uni.

What I dont get going back through all my statements is when they add the money if you contracted out. Do they normally pay it in at the end of the financial year or what?

Simon.

and this is the one single reason i'll never get contracted back in.

rightly or wrongly, i want to get my pension money when i want it, not when the future government decides. (probably be about 70+ by the time i get there!)

Not that I know too much about it but isn't it right that if you did contract out years ago, after April you can take 25% as tax free cash?

Something you can't do now and something you can only do with the pot of money that is outside the government scheme?