Contracted out of SERPS

nikkinoonooo

Hi,

This is my first post and Im aware Im going to come across as a bit thick, so please be kind!

Years ago (circa 1992) I bought a house. At the time of going through the mortgage etc I was told I should contract out of SERPS, which I did.
Nothing was explained to me about what it entailed, or what I should do regarding it in the future. I never questioned it, I was 19 and not particularly interested if Im honest.
I never really thought anything about it, I had the odd letter about it but paid no attention.
I recently had one from the current provider (Aviva) saying what its worth etc which isnt very much.
Ive always worked since, but mainly 20 hours a week due to having kids. Recently I started full time with the NHS so obviously now pay into their pension.
My main question is can these 2 pensions be merged somehow?
I also wonder if I was somehow mis sold this pension, although I know its my own fault for not looking onto it all sooner.

Any advice would be great.

Thanks,

Nicola.

xylophone

When you were 19, you contracted out of the Additional State Pension (State Earnings Related Pension Scheme) into a pension policy with Aviva.

National Insurance rebates were paid into the policy and you may have made personal contributions.

Contracting out on this basis ended in 2012.

Recently I started full time with the NHS so obviously now pay into their pension.

It may be possible to transfer the Defined Contribution Aviva Pension into the NHS Defined Benefit pension.

https://www.nhsbsa.nhs.uk/sites/default/files/2018-05/Transfer%20Booklet%20%28V18%29%2005.2018.pdf

Have you obtained a state pension statement?

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

Albermarle

I also wonder if I was somehow mis sold this pension, although I know its my own fault for not looking onto it all sooner.

It was normal at the time to be advised to contract out of SERPS and instead have contributions made by HMRC to a private personal pension. In simple terms you have given up some extra state pension but now have a personal pension pot instead. For most people it probably worked out about 50:50 either way.
It was not seen as a miss- selling scandal at the time ( or even now )

dunstonh

I also wonder if I was somehow mis sold this pension, although I know its my own fault for not looking onto it all sooner.

Contracting out was generally considered suitable if you were aged under 40-45 at the time (early contracting out could be as high as your mid 50s).

You are probably a gainer from being contracted out. Children giving you automatic credit for the state pension and sufficient time to built the maximum whilst having the early years in your own fund.

People complaining about contracted out (SERPS) has the lowest success rate of any type of regulated complaint. In fact, it is only because of a couple of rather unscrupulous claims companies that anyone really complains about these at all.

AnotherJoe

I would say do not consolidate into nhs because you'll then be stuck with the nhs retirement date.
You say there's "not a lot in it" but maybe spending it before you reach SP age will let you retire earlier and not pay tax on it. How much is in it?