Scottish Widows Advice

Shellybee

Ok, before I start. I'm going to ask about something I done when I was 17 because I didn't have a clue about pensions then and to be honest I still don't now and I'm 27. So please try and keep advice in simple terms so i can understand;) Oh and also this may be a very long post!


Back in 1996 I had my first job working in a factory. Scottish widows were interviewing everybody about opting out and having a pension with them. This lady was trying very hard to explain to me what it was but like I said I was only 17 and didn't have a clue what she meant, anyway she really did put me under pressure to take up the pension scheme. The only thing I really knew about was that I wouldn't have to pay anything from my wages as it would come from my NI.
Fast forward and I forgot all about it and remember getting £500 for voting on something
Anyhow I haven't worked since I took maternity leave in 2001 and I don't pay any NI.

Doing some clearing out I found an old statement from a few years ago and looking at my projected pension pay when I'm 65 I'm really scared!
So I rang this morning and asked to speak to someone about how I haven't worked etc. She told me that my old job had never told them I didn't work there anymore. And that basically all she could do was to send me out a booklet that might have the answer I need in it as to what to do next.

I'm really baffled by this all and looking back on it, I'm angry that I was asked to do this while I was only 17 and didn't understand. I can remember coming home from work and both parents being cross that I had done this without asking them for advice. But I couldn't have asked to leave the meeting to "ask mummy and daddy if it's ok":p

Any advice or words of wisdom or even to tell me I was stupid are appreciated.

TIA

***Edited to say I have just noticed the start date of my policy is 1999, so even tho' I signed the form when I ws 17 it didn't start until I was 21. Is this right???***

GUMPO

I would need to know a little more but on the surface here is what I think is going on.

You have seen an old statement from your pension provider and are alarmed at the small amount you seem to be getting.

I think you have become confused between the state pension and something that used to be called "SERPS" which is now called the state 2nd pension or S2P.

Your old age pension is seperate to everything else and is paid at whatever the going rate is when you retire. This is your state pension and you will not have any statement regarding this.

SERPS and now S2P are related to your earnings. People in employment get a top up to their old age pension which is funded from their national insurance. This is invested by the government. You can however choose to opt out which means instead of the government a firm of your choosing gets this money from your national insurance to invest. Because you only paid into the fund for a few years and the contributions are very small it will not be worth much. Remember though it is only a top up to your old age pension not your only source of retirement income.

The 500 quid you got was probably when the company that is holding the mony floated on the stock market a few years ago in the time of the carpetbaggers.

If this makes any sense then great. If I am off the mark post more info and I will try again. Otherwise fell free to tell me I am of no use.:beer:

dunstonh

Gump, I am telling you that you are.....spot on with what I would say

GUMPO

Cheers dunstonh
I don't do bad for a big dumb lad

Shellybee

GUMPO wrote:

Remember though it is only a top up to your old age pension not your only source of retirement income.

Gumpo thank you so much, everything made sense to me. And the above quote has put my mind at rest.
Thank you, thank you, thank you:beer:

GUMPO

No problemo
Glad to be of help.:cool: