Dads pension question

eviex

A big thanks to everybody for all the brilliant and free advice ! I have booked to see one of the IFAs recommended in the unbiased.co.uk website and will take their advice on how to invest the remaining 75% of the pension left in the best way possible and look into the 'impaired life annuity' options that are available

EdInvestor

So if my thinking is right - my dad might have been better never paying a private pension as the benefit of this has now been taken back off him in another way by the govt - am i right?

You won't know the answer to this until you find out how much pension income the "protected rights" part of his personal pension will buy.Then you can compare the two and see if his "gamble" - for that's what contracting out essentially is - has paid off.

The "protected rights" bit is the part of the pension which is made up of the accumulated NI rebates from the Government which he got when he opted out of S2P.Instead of that NI money going to pay for his S2P, it was given to him to invest for himself.

Get the IFA to tell you how much of the eventual pension Dad gets has been bought by the protected rights portion and then you can see if it's more or less than £23.75.