serps question - please help !!!

allan673

hi, when i was 16 or 17 i was advised to opt out of serps with barclays, so i did this. they sent me a letter 2 years ago about opting back in - so i opted back in.
i now work for the rail industry and want to join their final salary pension, but this is also contracted out of serps.
my question is will i still get the basic state pension when i retire? i am 34 now.
(some people say i will get the basic state pension only - because ive opted out, and others say i will get no state pension at all?)

i am worried because ive always been in work and paid national insurance contributions, but the barclays scheme when i opted out of serps will probably not be worth as much as the basic state pension.

any help is appreciated................cheers

EdInvestor

To find out how much your 2 state pensions will amount to, go here and request a forecast:

https://www.thepensionservice.gov.uk

SERPS/S2P opting out affects the second state pension, not the basic.Instead of getting S2P for the time you were contracted out, you will get your Barclays pension. This would be the same if you contract out into the railway pension.

Your basic state pension isn't affected by contracting out.It depends on the number of years NI contributions you have made.

allan673

cheers, basically ive worked since i was 16 (18 years now, never been out of work), and ive only been contracted into serps for the last 2 years.
and now i want to join the final salary railway pension, so i will be contracting back out of serps again.
its complicated to me.............please be patient lol !
i just want to get advice, will i definately get the state pension when i am 65, even though i will have been contracted out of serps - probably for all my working life.
thankyou in advance...........its appreciated !!!

seven-day-weekend

If you pay Class 1 (employed) NI contributions for at least 30 years, (or been credited with them), when you retire you will get the Basic State Pension which is around £85 pw at the moment.

Everyone who earns more than about £100 pw and is employed pays these contributions.

You will also get your Barclays pension and your railways pension.

What you won't get is S2P (Second State Pension) because you will have your contracted out works pensions instead of anything from SERPS but if they are final salary schemes they will probably together add up to as much if not more than your S2P would have done.

Hope this helps.

Dithering_Dad

Hi, Just a quick explanation to supplement what other posters have said. There are two state pensions. The basic state pension is available to everyone who has made National Insurance contributions for 44 years. This will soon be reduced to 30 years of NI contributions.

SERPS (State Earnings Related Pension Scheme) was also known as the additional State Pension. It ran from 6 April 1978 to 5 April 2002 when it was reformed and is now called the State Second Pension (S2P). If you contract out of SERPS it effectively means that your SERPS contributions were paid into your private pension rather than your state pension.

Whether you are contracted in or out, as the previous poster has indicated you will not really see any difference in your pension payments when you finally retire.

Relax.

allan673

thankyou for taking the time to reply to me, it is genuinely appreciated.
cheers...................al