Opting out of SERPS

Whizzkid15

Hello, I opted out of SERPS in the 80s when I was in my early 20s. Am I able to make a claim for compensation for it being mis-sold? I have read that the ages are 40 and 45 at the time of opting out.

MeteredOut

What specifically have you read that makes you think compensation might be due? What were you mis-sold?

Have you tracked down the pension where your contracted out SERPS payments went?

MallyGirl

why do you think you were mis sold?

TadleyBaggie

Who advised you to opt out?

DE_612183

I presume you had money re-invested into a private pension - how many years of NI credits have you got in the last 40+ years?

Have you quantified your loss?

dunstonh

Am I able to make a claim for compensation for it being mis-sold? 

How were you missold?

in 1996, the SIB did a review into contracting out of SERPS and found everyone was financially better off.   It was less favourable after Labour got into power in 1997 as they reduced the rebates early on but the increased them again towards the end of their term and the 2006 changes made it worthwhile again until it was abolished.

The FOS lists SERPS complaints as having the lowest uphold rate of any financial product available.

The move to the single state pension also benefitted those that had contracted out.

I have read that the ages are 40 and 45 at the time of opting out.

You have read that back to front.     Contracting out was better when you were younger.    You should contract back in when you were older.  The age varied over the years as the Governments played around with the rebate levels.  It was also dependent on your income.  It could be as low as 40 but it could be as high as 54 as the optimal age to contract in.          It wasn't 40-45 to contract out. You are way off the mark there.

Marcon

Whizzkid15 said:

Hello, I opted out of SERPS in the 80s when I was in my early 20s. Am I able to make a claim for compensation for it being mis-sold? I have read that the ages are 40 and 45 at the time of opting out.

Which was very much the advice of the day, with good reason. Why do you suddenly think that doing something which was going to be in your favour was somehow 'missold'?

Teaandscones

You should give your younger self a pat on the back for making an astute financial decision by opting out of serps. 

Whizzkid15

Thanks for all your comments. It was merely something I have read and it sounds like it was a good move for me when I was younger.