Equitable Life Money purchase Transfer Plan

Raksha

In around 1988, my employers offered all their employees the chance to 'contract out' of the Government Pension plan, and as a 28 year old woman, I was advised it would be best for me, financially, to transfer/contract out. I only worked about 5 more years after that, before leaving work to raise children (in receipt of Child Benefit, infact, still am, as youngest is 14)

I get a statement from them every year around this time of year. Although there's less than 2K in the plan (which doesn't seem very much)

There's an info leaflet with it, and one of the paragraphs is entitled 'Should I review my decision to contract out of S2P' They believe almost all policy holders will be better off in S2P and should seek the advice of an IFA - we're on a DMP and there's no spare cash for this.

Given that I am now 52 (nearly) and unlikely to work again due to health problems (not major or life threatening, but enough to make me unemployable) what would you advise?

dunstonh

Effectively, your pension has only been contracted out of S2P on paper. It hasnt been getting any rebates as you havent been working. Its a bit like putting a bucket under a tap but the tap isnt turned on. The bucket just sits there waiting for the water to arrive. That is what has happened with your appropriate personal pension plan. Its been sitting there waiting for rebates but you havent worked so none to pay. Now, in 2012, everyone is being contracted in on money purchase plans.

You cant do anything about that. It doesnt affect you. So, dont worry about it.