How to opt back in to SERPS?

Steve_Roberts_3

I think in the dim and distant past, on advice from a colleague,I opted out of SERPS. Then I went to work abroad for a few years - during which time apparently the ground shifted and people were being advised to jump back in...

The questions now are:-

- should I opt back in to SERPS?

And if so:-

-why?

-how?

Thank you!

dunstonh

Then I went to work abroad for a few years - during which time apparently the ground shifted and people were being advised to jump back in...

Thats not quite right.

Contracting out is an annual decision. Insurance companies that contracted out on the recommendation of their tied agents decided the liability for complaint wasnt worth it and many made the decision to bulk contract people back in unless told otherwise. It wasnt an advice decision but one of liability.

Also, as you were abroad it doesnt matter. You may be contracted out on paper but unless you had earnings with NI contributions you werent getting anything.

are you now back in the UK and employed? and how old are you?

Steve_Roberts_3

dunstonh wrote: »

are you now back in the UK and employed? and how old are you?

I've been back in the UK since '97, and have been in almost constant employment since '99, although I was recently (within the last month) made redundant.

I'm 43.

dunstonh

43 for men is the optimal age to contract back in. (40 for women). So you may as well get back in now. Contact your pension provider and tell them you want to contract in and how do you do it. They will send you the forms.

JOBEN

My husband got a letter from his pension provider advising him to opt back in, they sent the forms for him to do this too. He is 44.

I was thinking of getting an IFA to get the advice what do you all recommend.

Thanks in advance
Jo

dunstonh

My husband got a letter from his pension provider advising him to opt back in, they sent the forms for him to do this too. He is 44.

Yep. They have done it as he his hit the age to go back in.

I was thinking of getting an IFA to get the advice what do you all recommend.

The IFA is likely to say what I have said. However, if the pension is old it is quite possibly obsolete by modern pension standards so getting an IFA to review and report on it and see if a modern alternative would be cheaper/better could be still be worthwhile.

jamesd

JOBEN wrote: »

My husband got a letter from his pension provider advising him to opt back in, they sent the forms for him to do this too. He is 44.

Will he be wanting to retire well before his state retirement age? That's often a good reason for staying contracted out somewhat longer. The reason is that you can take the pension income from the contracted out money at early retirement, instead of having to wait for state retirement age. The overall income over the average lifetime may be lower but that can be counteracted by the benefit of getting it while it's needed, before the state pensions start to pay out.