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pension contract in/out
primera786
Posts: 30 Forumite
I have a private pesion with Legal and General that is over 15 years old , stopped paying into it 5 years age as I started with my company pension scheme. Today I rec,d a letter asking if I want to contract back in to serps any recomendations in or out ?
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We cant recommend either way. It depends on a range of factors that are specific to you. Check out the contracting out thread stickied at the top of the forum. I suggest you work backwards on that thread.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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I think the general consensus of opinion is to contract back into SERPS. The only advantage of staying contracted out is that you can draw on the contracted out payments into your private pension at an earlier retrement age; your SERPS benefits will not become payable until you reach state pension age.
But as the previous e-mail said it mainly depends on your personal circumstances.0 -
I think the general consensus of opinion is to contract back into SERPS.
No it is not.The only advantage of staying contracted out is that you can draw on the contracted out payments into your private pension at an earlier retrement age;
No it is not.
There is more to it than that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
primera786 wrote:I have a private pesion with Legal and General that is over 15 years old , stopped paying into it 5 years age as I started with my company pension scheme. Today I rec,d a letter asking if I want to contract back in to serps any recomendations in or out ?
best advice is to speak to an IFA, but what you have to consider is that you are trusting a government not to tamper with SERPS/S2P before retirementG/C Mar 2014 - £18.50 / £350 NSD 0/290 -
"Tamper with" could mean improve as well as the opposite. S2P is generally much better than the old SERPS for people earning below about 20k a year. It is of course
subject to uncertainty on that basis - but the same applies to any pension fund you put your rebate into.0 -
It's just appalling, the bickering that goes on in this forum .
Trying to keep it simple...0 -
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Yes it is - balls, no smilies on quick reply!I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Yes there are!
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