Opt out of SERPS/S2P?

mrconfused321123

Hi, i am also seriously confused about opting back into s2p or not. I am 38 and opted out about 17 years ago ( Guardian f s ). I work for Royal Mail and have a pension with them as well. You read so many conflicting views that my head is spinning ! Please help.

EdInvestor

mrconfused321123 wrote: »

I work for Royal Mail and have a pension with them as well.

If you are in the RM final salary scheme you will now be contracted out with them and won't have a choice. Check with your pensions department.No need to worry if this is so.

JayZed

I've scanned this lengthy thread and other information on this subject, but I'm not really any the wiser about what's the best option for me.

I'm 36, I have a PPP through my current employer, plus another PPP with my previous employer into which I no longer make payments. If I can afford it, I hope to retire in my late 50s, i.e about 10 years before my state pension kicks in.

I have never contracted out of S2P - not a conscious decision, just never been able to work out whether I should. Any thoughts?

EdInvestor

Not worth bothering now as it will be abolished in just over 3 years' time. if you want to see your NI money in action get a state pension forecast here:

https://www.thepensionservice.gov.uk

You will see there are two bits to your pension - the basic (currently 90 quid a week) and the state 2nd pension (S2P) on top of it.If you had conttacted out, that S2P bit wouldn't be there.

JayZed

Yes, I've got a pension forecast and was actually pleasantly surprised by the amount I'll get through S2P, but (a) I won't get it until I'm 67, a few years after I hope to retire (b) I'm concerned about S2P benefits being revised downwards before then, and (c) now seems like a good time to be investing more in shares through my personal pension.

I realise it will only be for four years (I think that if I contract out before 5 April it's backdated to the start of 2008-09, correct?), but I'm hoping that it will be four years of relatively cheap share prices. Is it really not worth bothering for that period of time?

dunstonh

Be wary when relying on S2P forecasts. The Govt have reduced these retrospectively 4 times. Think of it as a bonus to be on the safe side.

JayZed

That's exactly my concern, and why I'm leaning towards opting out now, even if it's only for four years.

sinar

Hi,

I was wondering if anyone could give me a bit of advice.

When I got my mortgage, about 16 years ago, I was advised to opt out of Serps, to be honest I never really researched it and just went with the advice, I was just so happy to be getting my first home that I never gave it any thought.

I have had a lot of letters over the years from Standard Life asking if I want to opt back in, it advised seeing and independent FA, but I could never afford one so I just ignored the letters as it all seemed quite confusing (stupid I know)

I got another one of the letters from them yesterday and I've now decided I shouldn't just ignore them and try and find out what would be in my best interests.

I've worked full time all my life, but only in jobs that paid a little over the minimum wage, I've always been single and I'm now 44.

Can anyone advise what would be best, or point me in the direction of somewhere that does not charge anything where I might find the information out?

Many thanks for reading,

Julie

sinar

I forgot to add that I don't have any other pensions, just the state one and the Serps opt out one,

Julie

EdInvestor

How much is your opt-out (SL) pension worth?