Some Pension Help Needed

Graham_John

As this is my first post and I could really do with the advice I’m going to lay all my cards on the table and see what comes back.

Here Goes,

I’m 36 years old and so far my financial history has been some what of a mess which unfortunately lead to personal bankruptcy in 2004 now discharged.

Through the financial strain my marriage suffered which lead to separation about 18 months ago and a divorce now looming on the horizon.

I have no major assets just a couple of thousand in savings and currently rent a small flat.

Jumping back a bit in the 80’s I was advised by Barclays to take out a private pension and opt out of what was then SERPS I have since discovered this was not probably in my best interest’s. This pension still receives my SP2 payments although I stopped paying any additional monies many years ago.

I have so far contacted Barclays who have sent me the Inland Rev form to opt back into SP2 and await the outcome from the official receiver who dealt with my bankruptcy on the payments made into this pension.

I have been in the same job for about four years now earning around 30-35k a year. There is a company pension on offer after 12 months service which I now qualify for but the nature of my job is sales and can be quite volatile on the employment front.

The above is just to outline were I’m currently at (I know not to good).This leads me to some questions at the age of 36 with no real pension fund or assets.

A) Am I right to opt back into SP2 and what happens to SERPS/SP2 payments I’ve made into the Barclays Pension already. The lady at Barclays Life I spoke to on the phone said I have two accounts because my BR order was still showing with them she would not give me any details. Are all SP2 payments held in a separate account along side your main account?
I know this sounds a bit cold but should I wait until my divorce has gone through before taking on a private pension.
C) I’m not sure about the company pension for the reasons above actually I’m unsure as to what sort of pension product to go for full stop.

Any Help, comments (good or bad) or advice most welcome.

Graham

dunstonh

A) Am I right to opt back into SP2 and what happens to SERPS/SP2 payments I’ve made into the Barclays Pension already.

You may or may not have been right. There are advantages as well as disadvantages and indeed, with poor retirement planning that you currently have, you may be better off contracting out to lower your income in retirement only to have it increased by pension credit. (lower as in taking 25% lump sum on the protected rights which you cannot do with contracted in benefits).

The lady at Barclays Life I spoke to on the phone said I have two accounts because my BR order was still showing with them she would not give me any details. Are all SP2 payments held in a separate account along side your main account?

Serps and S2P is held as protected rights in the pension. Personal contributions are held as ordinary rights.

I know this sounds a bit cold but should I wait until my divorce has gone through before taking on a private pension.

Ask your solicitor as they would know what is best for your circumstances.