worthless pension

Janelash

Hi, I am 44, I am a housewife and mother I opted out of serps in the 80's, my present projected pension at 60 is yearly is £76!!

I haven't paid into it, I am quite frankly clueless. I am still a stay at home mum with no income what should I do? Can I opt back in to Serps?

Please help me I am very worried

mania112

Without an income opt in or out (or shaking it all about) is pointless, right?!

Nevertheless, opting in is no longer possible.

If this is your only pension, and if you are unable to make regular contributions, you can withdraw the whole amount at age 55 if it has a value of under £18,000.

This will be 25% tax free, and 75% at your income tax rate (which sounds like it might be zero).

Interestedparty

You actually have to be 60 to take it all as a lump sum not 55.

As the plan may well be an old style plan with old and often expensive charges it may be worth asking an IFA whether they would review it for you and how much it would cost you to have it reviewed

atush

When will you go back to work?

Have you gotten a pension forcast (for the state pension) from the DWP? You will get credit for years looking after the children, and may have a youth credit from 16-19. So if you go back to work you should be able to get enough years for a full state pension. And once back at work there will be a work pension to pay into. See you do it, as you don't have enough pension provision.

oldtractor

Hi Jabne you wont get a state pension at 60 you will be about 68 before you get a state pension.

jamesd

There are currently two main parts to the state pension, the basic state pension and the additional state pension. The basic state pension accrues of each year working (above a certain low income level) and various things like unemployment benefits or child benefit get you years of entitlement. The other portion is the earnings-related additional state pension which you get entitlement to via SERPS and now S2P contributions. Only the additional state pension portion is affected by contracting out.

Unless you are at work in a place with a final salary or similar pension scheme you are already contracted back in to S2P, which replaced SERPS many years ago. Contracting out for the defined benefit pension types ended in April 2012 for everyone.

Money from past contracting out will remain in whatever pensions you have it in and you can continue to manage those investments and take an income from them as before.

If you are not working while being a housewife and mother you will have no S2P accruing, so it makes no difference to that whether you are contracted in or out. If you are getting child benefit, or have signed up for it and then said that you don't want it paid because you have a spouse earning enough to make the amount paid zero, you will be accruing one year of entitlement to the basic state pension each year.

I think oldtractor is right about the age at which you get the state pensions but that makes no difference to when you can get non-state pensions, including those purchased with contracted out rebate money. You can start to get those at any age from 55 to the day you die if you want. The amount paid is usually less at younger age than older.