opting out of SERPS

Tonyuk

opting out of SERPS I have searched forums only found really old posts just wondering if I should look into the mis-selling of opting out of serps.

I actually opted out when I was still in school around 1990 just before leaving, someone from Barclays came round and told us it was the future, and I've been opted out since the government opted everyone back in a few years ago, now I did end up with a pension pot out of it but just wondering if it was bad advice ?

dunstonh

opting out of SERPS I have searched forums only found really old posts just wondering if I should look into the mis-selling of opting out of serps.

its not opting out. it was contracting out.

Plus, most people are financially better from contracting out of SERPS. So, why do you think you were missold?

I actually opted out when I was still in school around 1990 just before leaving, someone from Barclays came round and told us it was the future, and I've been opted out since the government opted everyone back in a few years ago, now I did end up with a pension pot out of it but just wondering if it was bad advice ?

The reason you see so little on contracting out SERPS missale complaints is due to a few reasons:
1 - The regulator did a review some years back and found less than 1% of people who contracted out may have been missold. That is a very low failure rate.
2 - Most people are better off financially because of it. Its unusual for people to complain about things that make them better off.
3 - The FOS reject most complaints about contracting it. Indeed, it has the lowest complaint uphold rate of any financial product and is one of the least complained about products.
4 - The claims companies stopped being active in this area once they realised they couldnt make any money on it. The exception were a couple of companies that put in fake complaints to harvest data to then sell you a pension transfer which they then took figures of around 5% commission on. That is where they made their money. You tend to see them advertising in the usual scam places. Such as facebook adverts.

So, why do you think you were missold?

xylophone

http://www.puntersouthall.com/pension-insights-and-views/Insight%20Attachments/Abolition%20of%20DC%20Contracting%20Out%20-%20Sept%2011.pdf

https://www.which.co.uk/money/pensions-and-retirement/state-pension/guides/what-was-contracting-out

I actually opted out when I was still in school around 1990 just before leaving,

You opened a personal pension in 1990 when you were 18? The NI rebates were paid into this pension until 2012?

What has happened to this pension?

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

Tonyuk

I was actually in school when we were advised to contract out 16 not 18 got us before we even left school.

only reason I ask is I keep getting spam email about it the SERPS contracting out mis selling. I think by time I'm old enough to retired I should have enough in the state pension to get a full pension, The amount opted out wasnt great deal but yes that in a pension pot at the minute.

Dox

dunstonh wrote: »

Plus, most people are financially better from contracting out of SERPS. So, why do you think you were missold?

So, why do you think you were missold?

A child of the compensation culture...

xylophone

I think by time I'm old enough to retired I should have enough in the state pension to get a full pension,

You can check your state pension - see above.

It seems very likely that you will benefit from a full NSP at SPA.

You will also have the benefit of the former protected rights pension.

https://www.gov.uk/new-state-pension/how-its-calculated

hyubh

Tonyuk wrote: »

I think by time I'm old enough to retired I should have enough in the state pension to get a full pension

Yep, given your age, you'll very likely end up with the same state pension you would have got had you not contracted out for many years, only with a personal pension on top.

hyubh

Dox wrote: »

A child of the compensation culture...

Remind me, what does the 'Newbie Alert' say...?