National Insurance Rebate

dunstonh

Im 26 years old earning £28k and currently dont have any pension plans (dont ask!), so would this be good for me (also might be living abroad in later years)?

The Govt isnt helping you. In return for paying a rebate into a personal pension plan, you cease to get the second state pension. Its generally considered a cost neutral option providing you use decent investments. There can be an advantage to some but disadvantages to others.

Contracting out of the second state pension (as it is correctly known as) is something that is ending in 2012.

By the way, doing it through that website is expensive as they are pricing the pensions on a full cost basis (i.e. maximum commission) but not providing any advice in the process. That means no FOS protection if you find out it was the wrong decision for you. That said, there is so little profit in contracting out now you cant blame them not doing it cheaper. Although saying its free is similar to the bad old sales reps as it isnt. You are paying for it within the policy.

To be honest, I think the website is not very good and doesnt adequately cover the risks, pros and cons. It also contains errors (e.g. how its paid on death).

noh

nzseries1 wrote: »

mamba70, your website looks awfully familiar to http://www.1stcontactnirebates.com/
You've just ripped off their website and changed the phone number and logo, haven't you!

Both domains are registered at the same address so likley the same owner.
http://www.whois.net/whois/nirebateonline.com

http://www.whois.net/whois/1stcontactnirebates.com

the .org versions are also registered

This company is at the same address.
http://www.sablewealth.com/

Jake'sGran

mamba70 wrote: »

There is nothing dodgy about doing an NI rebate (which means contracting out) or www.nirebateonline.com
I should know.....i run the site :j . We are regulated by the FSA and this license does not come lightly. you can also call us anytime and we'll talk you through the process.

All we're trying to do is get the word out cost effectively hence why we set up the website. it would be too expensive to sit everyone down individually and explain the complexities.

Feel free to ask me any questions about NI and contracting out on this forum. i'm a regulated adviser and can give you real facts.

hope this helps. PS: i'd advise anyone under age 40 or a foreigner to do it.

Is it not explained in full on the DWP website? I would have thought that was the first place to look for anyone wanting information about this.

Harry_Powell

drew33 wrote: »

Hi Harry,

Just to let you know I have nothing to do with mamba70.

I saw an advert on the tube, googled it for more info but mainly got these companies offering their services.

I came on here and used the search function but couldnt find anything. This was the most relevant thread I found so posted here for help.

Thanks for the info, I will be doing some serious investigating before I 'opt out' as I am pretty clueless when it comes to this type of thing.

Cheers

Yes, right. That's why you registered with MSE with the burning desire to tell us all of this amazing company and then were never seen again. I'm convinced. :rotfl:

drew33

Harry_Powell wrote: »

Yes, right. That's why you registered with MSE with the burning desire to tell us all of this amazing company and then were never seen again. I'm convinced. :rotfl:

If thats what you want to believe then go ahead, but youve REALLY got the wrong end of the stick.

Now I know more about this opting out I definitely will not be going with a company I have never heard of, even if they did offer a good deal.

It wouldn't be very clever putting your main source of income (once a pensioner) into a small unknown company, especially the way the market is at the moment.


This thread has probably been the least helpful Ive ever come across.

Anyone know of any good pension deals out there by a well known, reputable company?

Cheers

dunstonh

Now I know more about this opting out I definitely will not be going with a company I have never heard of, even if they did offer a good deal.

Most people have heard of AXA. However, the deal being offered is not good. Its the typical maximum cost you can do it on.

It wouldn't be very clever putting your main source of income (once a pensioner) into a small unknown company, especially the way the market is at the moment.

I wouldnt call AXA a small unknown company.

Anyone know of any good pension deals out there by a well known, reputable company?

Deals for what?

nzseries1

noh wrote: »

Both domains are registered at the same address so likley the same owner.
http://www.whois.net/whois/nirebateonline.com

http://www.whois.net/whois/1stcontactnirebates.com

the .org versions are also registered

This company is at the same address.
http://www.sablewealth.com/

Good investigating... it's just that 1st Contact is a very large well known (amongst antipodeans at least) company, whereas nirebateonline.com nobody seems to have heard of!

penguin9987

My girlfriend has been sent this email below and she not got a clue what this means to her, she's not sure if its a scam or if its trying to opt her out of a second state pension, im also unsure what this means for her, hope someone can help



Dear A,

Under current government rules you are allowed to claim a refund on some of your National Insurance payments.

The average refund is approx. £1,600 and for many individuals it is preferable to manage their finances themselves rather than entrust the government with this. Please note that this refund must be paid into a retirement plan and is not a cash payment.

Go to to find out more and apply directly online.

dunstonh

My girlfriend has been sent this email below and she not got a clue what this means to her, she's not sure if its a scam or if its trying to opt her out of a second state pension, im also unsure what this means for her, hope someone can help

Forward the email to the FSA as the way its worded cannot be compliant. There is a lot more to it than that. It is a transaction with pros and cons (and is being abolished in just over a years time. So, this company may be in the period of trying to stitch up as many as they can before they fold.

jamesd

The key catch is: if you do this you lose one year's worth of Additional State Pension contribution so your state pension income is lower by a Pound or three a week. Taking th rebate is speculating that you'll be able to grow the money to produce a payout greater than that. A young person with high investment risk tolerance could probably do that, a person fifteen years from retirement with a cautious view couldn't.