opt back in to serps?

thelondonstyler

Hi,

I am 37 and opted out of SERPS when i was about 17. I have heard that it is probably best i opt back in - is this correct?. Does the fact that I am self employed make any difference?

Thanks for your help

dunstonh

I have heard that it is probably best i opt back in - is this correct?.

No its not correct. It may or may not be depending on your opinions and how you invest your money. Its generally cost neutral until age 43 (meaning no option is better than the other from a direct financial reason). However, options like being able to take your contracted out benefits early and take a 25% lump sum tend to be attractive to many people (you cant do either of those with contracted in).

Does the fact that I am self employed make any difference?

Yes. It means you cannot be contracted out. If its a legacy arrangement from your employed days it means on paper your pension will accept rebates but as you are self employed you dont qualify for the second state pension so you dont get any rebates.