Opt out of SERPS/S2P?

vwyob

Thank you so much for the information. You have been extremely helpful and are an asset to the forums.

stumoore

I managed to find out where my pension is, they told me it started in 1989 and ended in 2007 (I was opted back in apparently), what happens now?

As you can tell I know nothing about pensions at all

Stuart

Paul_Herring

Do you have any pension provision at all at the moment? i.e. are you actively contributing to any pension fund?

stumoore

Paul_Herring wrote: »

Do you have any pension provision at all at the moment? i.e. are you actively contributing to any pension fund?

No I do not, I know thats not good

Stuart

jem16

stumoore wrote: »

I managed to find out where my pension is, they told me it started in 1989 and ended in 2007 (I was opted back in apparently), what happens now?

It's not really ended - it's just stopped receiving your contracted out rebates. You can leave it exactly where it is until age 55 when you can access it. Or you can start contributing to it or transfer it to another pension.

What is its current value?

stumoore

jem16 wrote: »

What is its current value?

They sending that info by mail

Stuart

murphydog999

dunstonh wrote: »

43-45 is generally the optimal age to contract back in. As it happens, this is the final year of contracting out on money purchase schemes. So, you will be contracted in automatically.

Great news for those that contracted out. The contracted out money is currently known as protected rights and has a number of rules attached to it. From next April, they will be reclassified as non-protected rights (same as your personal contributions) and all the rules attached specifically to protected rights will be gone. That means greater death benefits and income options.

This is such a confusing subject!!

This also applies to me as I contracted out in '87, aged 22, with a Legal and General plan. This thread is the first I've heard of these changes (nothing from L & G) and, not being clued-up, I have no idea, reading the paragraph above why this is such good news. (Not being 'protected rights' doesn't sound so good!) Could this be expanded on please?

So, does this money now just sit there until I retire? I appreciate it should be growing but could it be better utilised elsewhere, are there better companies?

I know I can't contribute to it as it is a stand-alone plan, but if I moved it would I then be able to contribute?

Many thanks for any advice.

Paul_Herring

murphydog999 wrote: »

Not being 'protected rights' doesn't sound so good!) Could this be expanded on please?

Misnomer. What was being protected was the government in that they placed restrictions on what 'protected rights' could purchase (the annuity must be inflation linked, it must be used to provide an income for a spouse.)

Those restrictions are to be removed.

So, does this money now just sit there until I retire?

It simply becomes equivalent to money you (or your) employer would have placed into that fund.

thenetdoctor

What NIC's pay for is not the only issue here. I am one of the thousands who not only pay employee but get saddled with the employer's contribution as well - ie 'contractors' (for which read people who would like a proper job but have to resort to cheapskate contracts where you are forced to sign up with an umbrella company and give up all your rights).
Here's my pay breakdown: 480 pw (WOW! right?) think again:
employee NIC- £41 pw
employer NIC - £50 pw
tax - £86 pw
umbrella fee - £11 pw
Real pay - £292 (on which my company requires that I run a car).
Frankly I don't resent any of the above except the employer NIC. Of course the government clamped down on contractors (long before I started) claiming expenses and avoiding tax with IR35, but did nothing about employers ducking out of NIC and putting it onto their employees. If we are employees for IR then we are employees for NIC too. What do you think?

dunstonh

thenetdoctor wrote: »

What NIC's pay for is not the only issue here. I am one of the thousands who not only pay employee but get saddled with the employer's contribution as well - ie 'contractors' (for which read people who would like a proper job but have to resort to cheapskate contracts where you are forced to sign up with an umbrella company and give up all your rights).
Here's my pay breakdown: 480 pw (WOW! right?) think again:
employee NIC- £41 pw
employer NIC - £50 pw
tax - £86 pw
umbrella fee - £11 pw
Real pay - £292 (on which my company requires that I run a car).
Frankly I don't resent any of the above except the employer NIC. Of course the government clamped down on contractors (long before I started) claiming expenses and avoiding tax with IR35, but did nothing about employers ducking out of NIC and putting it onto their employees. If we are employees for IR then we are employees for NIC too. What do you think?

You may want to post in your own thread or in the tax section as your post is not applicable to this thread or even this section.,