Opt out of SERPS/S2P?

Paul_Herring

vwyob wrote: »

As I am aware my NI contributions are going to them. Can I still opt back in? Should I opt back in?

You have no choice in the matter. Anyone opted-out, not in a final salary scheme (you're not,) will be opted back in as of next month.

I just googled the state pension which is around 107 quid a week. But I have had a letter from Aviva saying at 65 my payments by todays standards will be 178 quid a month!!

That £178 is about £41 a week on top of your £102 for a total of £143 a week (on current figures, and assuming your quote from Aviva is solely based on your refunded NI contributions, currently called 'protected rights.')

Had you contributed to S2P instead of opting out, the maximum I think you'd be getting is £159.52 (that's the state pension plus S2P.)

All these figures are in today's money (assuming your Aviva quote is as well.)

S2P (had you gone for it) is only payable to you at state pension age (67 or 68 at the moment - it may go up.)
Your Aviva fund on the other hand can be start a pension (at the moment) at any age from 55.

The S2P amount is 'fixed' (it'll go up with inflation however.)
Your Aviva fund on the other hand may do well (or not) increasing (or decreasing) that £41/week - depends where it's invested.

You (at the moment) can opt to withdraw 25% (£10K at a rough guess based on your numbers) as a lump sum tax free of that fund on retirement (from 55,) but this will reduce your quoted amount from Aviva by roughly a quarter.
No such facility is provided for S2P.


Note that none of these numbers will be accurate when it actually comes for you to retire, but I believe they're all in the right area.

dunstonh

I'm really confused. I'm now 42 and was pushed into opting out when I was 17. Nothing was explained but we were all assured it was the thing to do. At 17 I just did it. Guys in suits were saying its the done thing, what was I supposed to know. It was with Norwich union (Aviva).

At age 17, it made sense and I bet you are pleased you did.

As I am aware my NI contributions are going to them. Can I still opt back in? Should I opt back in?

As mentioned above, you are no longer contracted out.

I just googled the state pension which is around 107 quid a week. But I have had a letter from Aviva saying at 65 my payments by todays standards will be 178 quid a month!!

You are mixing up the basic state pension with the the second state pension. You still get the basic state pension. Aviva have only replaced the second state pension.

stumoore

Sorry if already asked before, but,

I am 42 now, when I was 16 I opted out of SERP's, I was told this was the best thing to do, was it?

I don't know who this policy is with and I have no paperwork at all, how do I find out any details on it?

I have heard about a claim for compensation some people have made relating to SERPs, what is this about?

Many Thanks

Stuart

dunstonh

I am 42 now, when I was 16 I opted out of SERP's, I was told this was the best thing to do, was it?

The FSA flowchart on suitability shows that anyone who contracted out from 88 to 96 under the age of 45 was right to do so.

I have heard about a claim for compensation some people have made relating to SERPs, what is this about?

Claim companies would tell you to complain about anything if they could earn a commission out of it. There were quite a few claims companies putting in SERPs complaints until the FSA did a review and found a failure rate of under 1.5%. The FSA then published a consumer guide with a flow chart to see if you were mis-sold (the under 45 age was the main bit).

Most claims companies have now given up as the odds of success are very low. There are a small number left. Some put in complaints, often dodgy complaints, in the hope of success but the main reason they do it is to find out information on your pension and then transfer it taking a commission (typically around 5% -7% of the amount of your pension. Totally unethical but that is claims companies for you.

Why do you think you may have been mis-sold?

stumoore

I don't think I was mis-sold, and it would seem from the dates that I joined at the right time (1988)

Now I just need to find out who holds this pension that could be hard I think.

Thanks

Stuart

jem16

stumoore wrote: »

Now I just need to find out who holds this pension that could be hard I think.

You would normally expect to have paperwork and an annual statement.

Do you have other pension provision - ie a company pension?

Paul_Herring

stumoore wrote: »

I don't think I was mis-sold, and it would seem from the dates that I joined at the right time (1988)

Now I just need to find out who holds this pension that could be hard I think.

1) Contact your employers from around that time to see if they have the details
2) Use the free government Pension Tracing Service

stumoore

I dont have anything, when I signed up for this I was living at my parents house, we have all now moved and I have absolutely nothing relating to this, cant even remember who holds it (I know I'm useless lol)

Stuart

stumoore

Paul_Herring wrote: »

Use the free government Pension Tracing Service

I did this yesterday, so fingers crossed

Stuart

jem16

stumoore wrote: »

I did this yesterday, so fingers crossed

Stuart

So what have you been doing pension wise for the last 26 years? You may now be in a scheme that has been contracted out so will take precedence.