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My pension problem has been eating away at me for many years
Kallan16
Posts: 1 Newbie
Many years ago (1991-2) I went for a loan to purchase a car and was told it was approved but was also told We don’t give things for nothing and was asked to take out a pension, fearing that I wasn’t getting the loan I took out the pension out and have regretted it ever since also they contracted in and out of serps which I have now heard is wrong!
Any advice please it was with TSB and now run by Scottish widows.
Any advice please it was with TSB and now run by Scottish widows.
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Comments
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My advice would be - be glad you were persuaded to take a pension out almost 30 years ago & check your state pension entitlement at https://www.gov.uk/check-state-pension
You will almost certainly be better off than if you hadn't taken the pension out in 1991.0 -
I took out the pension out and have regretted it ever since also they contracted in and out of serps which I have now heard is wrong!
The way they did it was wrong. However, getting you to put money aside into a pension is a good thing.
There is absolutely nothing wrong with contracting out. in 1996, The SIB did a review of contracting out and found out everyone up to that point who had contracted out was better off. It fell back a bit after 1997 when Labour reduced the rebates (stealth tax). However, they increased them again in their later years and the changes in 2006 and then 2015 mean that virtually everyone is better off after contracting out. The FSA did a review of contracting out after claims companies threatened to start putting in mudslinging complaints and it found a potential failure rate of just 1%. That is a tiny level. This is reflected in the FOS complaints stats where SERPS complaints have the lowest uphold rate of any type of complaint.
So, why do you think you were not?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 -
How would a non-employer scheme be contracted out? Genuine question.0
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Just to concur with everyone else, it was shoddy behaviour that's left you better off , it's like someone grabbed your shopping bag with a mars bar in it and ran off but in the kerfuffle dropped their wallet with thousands of Pounds in it.0
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TrickyDicky101 wrote: »How would a non-employer scheme be contracted out? Genuine question.
You could contract out with a personal pension (the possibility was removed a few years before DB contracting out was abolished).0
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