Opt out of SERPS/S2P?

Eastlands70

Thanks for the replies everyone. I'm 43 and haven't been out of work since 1989 so have built up 25 years of NI contributions.


I'd not considered the new single-tier state pension so I'll wait until I get the forecast and see where I stand.

Eastlands70

dunstonh wrote: »

I would have thought the opposite if you are in your 40s and the additional state pension being abolished in 2016. With around 25-30 years to still work plus, the 7 you have had already in, then you would more or less qualify for full entitlement. Plus, you get the contracted out pot to keep as well.

If, when I've got some more qualifying years behind me, I do qualify for the full entitlement, would it be fair to assume that the contracted out pot now amounts to an additional unexpected bonus that has come about as a result of the new single-tier scheme coming into play?

Paul_Herring

Eastlands70 wrote: »

If, when I've got some more qualifying years behind me, I do qualify for the full entitlement, would it be fair to assume that the contracted out pot now amounts to an additional unexpected bonus that has come about as a result of the new single-tier scheme coming into play?

Yes. Which you can start taking when you're 55 (if you want,) with the rest of any other private defined contribution pot, rather than waiting until state retirement age.

Presuming, of course a future government don't change the rules in the meantime. Again. Too Much.

Eastlands70

Paul_Herring wrote: »

Yes. Which you can start taking when you're 55 (if you want,) with the rest of any other private defined contribution pot, rather than waiting until state retirement age.

Presuming, of course a future government don't change the rules in the meantime. Again. Too Much.

Thanks for that. That's how I read it. It's not a huge pot (currently valued at £22,400) but it could come in handy at 55 as I suspect I'll still owe a fair bit on my mortgage so may use some to pay that down. I'm also paying regular monthly contributions into a Virgin personal pension plus planning on investing in the new workplace pension when it comes online in the next couple of years so could keep investing in those beyond the age of 55 while just drawing down the contracted out pot.


Of course, as you say, there's still plenty of time for the government to change the rules again so not getting ahead of myself just yet!

dunstonh

I'm also paying regular monthly contributions into a Virgin personal pension plus planning on investing in the new workplace pension when it comes online in the next couple of years so could keep investing in those beyond the age of 55 while just drawing down the contracted out pot.

Virgin pension is really poor value and has poor investment options. you may wish to review that.

Eastlands70

dunstonh wrote: »

Virgin pension is really poor value and has poor investment options. you may wish to review that.

Thanks for the heads up. Any ideas on who might give a better return? Currently paying £100 a month into it and my existing pot is worth just over £10,000

kidmugsy

Eastlands70 wrote: »

Thanks for the heads up. Any ideas on who might give a better return? Currently paying £100 a month into it and my existing pot is worth just over £10,000

My experience with a modest SIPP is that HL are decent value and give excellent service. Other people think highly of Cavendish Online. There are others well spoken of: see many threads on here.

eastcorkram

Here is another dumb question from me! How do you know if you are opted in or out of SERPS? I've been working since leaving school in 1976. I lived and worked in Ireland for about 18 years (1990-2008). I seem to remember something about SERPS back in the early 80's. I've no idea though, if I opted out?

dunstonh

Here is another dumb question from me! How do you know if you are opted in or out of SERPS?

You are not contracted out. It was abolished. Everyone who was contracted out was contracted back in.

I lived and worked in Ireland for about 18 years (1990-2008).

So, not subject to UK pensions.

eastcorkram

dunstonh wrote: »

You are not contracted out. It was abolished. Everyone who was contracted out was contracted back in.



So, not subject to UK pensions.

Worked in UK from 1976 to 1990, and from 2008 to present. Not sure how pension will be worked out when the time comes. Assume that the payments made in Ireland will count towards a full state pension here. Though I think I read somewhere that the amount may be different due to the higher pension in Ireland?