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serps
Dollface7
Posts: 1 Newbie
I contracted out of SERPS in 1987 then after a few years I went self employed. Contributions stopped going to my pension and I was also contracted out of SERPS 2 without really knowing. I am at a loss what to do about pension as the value is really low and I don't understand what SERPS was all about. Any advice would be great.
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Comments
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I contracted out of SERPS in 1987
How can you say you didn't know and also claim to have made an active decision to opt out?
Are you saying you forgot about it? That's ok, it's just confusing.Contributions stopped going to my pension
Do you mean those years don't count towards your basic state pension?
Or do you mean the SERPS payout stopped?
Contracting out ended April 2016 so do you stopped payments relate to that date?I am at a loss what to do about pension as the value is really low and I don't understand what SERPS was all about. Any advice would be great.
I would suggest you start with a state pension forecast and then come back and tell us what is says.
Also would be useful to know how old you are and what you state pension age is.0 -
Well done on contracting out. A good decision to make in 87. However, it was only short term as you cant contract out when you are self employed. The SIB found that everyone who had contracted out before 1996 was financially better off. it wobbled a bit in the years after that but the changes in 2015 swung it back in favour of contracting out. And then the changes in 2016 to the new state pension really worked in your favour too.
Effectively you have a pension fund with a value. It will be low because you went self employed. However, its a value and better than nothing. Hopefully you have other pensions you paid into over the years?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Have you obtained a new state pension forecast?
https://www.gov.uk/check-state-pension
Are you currently contributing to a pension?0 -
I contracted out of SERPS in 1987 then after a few years I went self employed. Contributions stopped going to my pension and I was also contracted out of SERPS 2 without really knowing. I am at a loss what to do about pension as the value is really low and I don't understand what SERPS was all about. Any advice would be great.
I contracted out, only for a few years, with the Prudential.
I ended up with around £30,000, good luck
https://www.gov.uk/find-pension-contact-details0
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