SERPS opt back in ?

gazpacho_uk

Sorry for yet another SERPS related question.
After reading through the information and responses on here regarding SERPS, I have decided to opt back in, 26 years after opting out. The SERPS opt out scheme was and still is with Scottish Widows. I contacted the NI helpline yesterday and they suggested I could opt back in NOW which will mean that any payments that would have been made to SW between april 2010 and april 2011 will now go back into SP2 rather than the opt out scheme.
Does anyone think I should go ahead now or should I wait until after 5 april 2011 (the NI helpline could not advise me on this point), I dont know how relevant or important this might be.
Also, can I move the "pot of money" from SW to a better performing pension scheme should I be able to find one or is it now stuck (frozen) with SW until I retire ?

Any help in this minefield of saving for my retirement is much appreciated

bilbo51

I would leave it in the opt-out fund for this year and next - ie until April 2012 when you will be automatically contracted back in to the State scheme as the option to contract out is being withdrawn then. I would do this so as to have control over it - instead of the government who may decide to abolish S2P in the very near future.

gazpacho_uk

Thanks for your quick reply Bilbo. Obviously the people at the National Insurance helpline are not financial advisors, but they gave me the option to opt back in now or wait ....... but wouldnt advise either way. I had been told about being contracted in automatically in 2012, so I may well take your advise and wait til then

bilbo51

gazpacho_uk wrote: »

so I may well take your advise and wait til then

It's just my opinion. I'm not in a position to advise you either

gazpacho_uk

that should have been advice (not advise) ....... yep, I just appreciate your help/opinion, Thanks

dunstonh

Anything posted on these boards is just opinion and not advice. Even from those of us in real life that can give advice.

The optimal age to be contracted in around age 41-45 (Depending on earnings/gender). Apart from that you have the pros and cons of the differences of being contracted in/out.

Also, can I move the "pot of money" from SW to a better performing pension scheme should I be able to find one or is it now stuck (frozen) with SW until I retire ?

Frozen is not a term that applies to personal pensions. You are free to transfer it but as we know nothing about your chosen investments, we cant say if you would get better or not by moving them. We also dont have a crystal ball for future returns. We can only comment on investment potential. It is possible that modern contracts are cheaper than older ones but not all older ones are bad. So, a transfer analysis would be a good idea along with a review of the pros/cons of being contracted in or out for the last year.

Any help in this minefield of saving for my retirement is much appreciated

the decision of contracting in/out for 1 year is only really going to make a difference of a few pence a year. Contracting in/out isnt really saving for your retirement but just changing some of the options. Actually paying towards your retirement is required for retirement planning.

gazpacho_uk

looks like the way forward is a transfer analysis with a review of the pros/cons of being contracted in or out for the last year. thank you

I do have a local government pension too and I purchased additional "blocks" a few years ago.

Sorry if I have not used correct terminology, the whole issue of pensions is a bit of a blur and it is easy just to forget about it so long as money is going into the system.

I still have a good 20 years of work left in me yet, but I guess I need to find professional financial advice now to help ensure a moderate/comfortable prension when I come to retire

kidmugsy

In Investors' Chronicle last month, one of their writers recommended staying contracted out. If you local library stocks it, it may be worth a look.

gazpacho_uk

thanks kidmugsy, I will try and gethold of a copy