opt out of serps

bachey

Hello can anyone advise me if it is best to opt back in to serps as i opted out a few years ago now people are saying it is best to contract back in thanks.

dunstonh

now people are saying it is best to contract back in

What people are saying that?

There are pros and cons to contracting out. Some people are best contracting out, some contracting in. The ideal age to contract in is 43 men and 40 for women. Under that age though there isnt a lot of difference monetary wise apart from how and when benefits are paid.

jamesd

When are you realistically planning to retire? If it's well before state pension age then you may well be better off remaining contracted out so that you can take a pension from the contracted out money when you retire, instead of not getting any of it until state pension age. How much you would get depends on how well the investments you make do.

If you're single and expect to stay that way then it may also benefit you to stay contracted out, so you don't need to provide for an income for the spouse you don't have.

bachey

thanks for your help i will be retiring a the age of 65 so i think i will contract back in,is that best?thanks again.

jamesd

Since you're retiring at or close to state retirement age that removes one main benefit of contracting out, so contracting back in seems like a good idea for you.

bachey

thanks jamesd 4 ur help