Opting out of serps

Wolfy197216

WitsEnd101 said:

So, are the people who didn't opt out now kicking themselves or do they get additional SP to compensate?

from what i understand which is quite a small amount, no i don't think they do... they get the 230 plus anything they have contributed to a private pension whereas we have a nice little pension pot on top of the 230 which we haven't had to contribute towards from our own wallet.

I'm sure that is the case

MallyGirl

The rules just changed- as often happens. There is only one new SP so there are some winners and some losers within those in the transition period

Wolfy197216

Wolfy197216 said:

WitsEnd101 said:

So, are the people who didn't opt out now kicking themselves or do they get additional SP to compensate?

from what i understand which is quite a small amount, no i don't think they do... they get the 230 plus anything they have contributed to a private pension whereas we have a nice little pension pot on top of the 230 which we haven't had to contribute towards from our own wallet.

I'm sure that is the case

don't get me wrong it's not a massive amount but 400 extra a month is better than nothing 

Wolfy197216

WitsEnd101 said:

So, are the people who didn't opt out now kicking themselves or do they get additional SP to compensate?

don't think my last comment went through correctly but i don't believe so no, they may obviously have a private pension which they have paid into but the benefit of opting out is we have this extra payment which we've not had to contribute out of our own pocket towards... its not a huge amount of money but £400 per month is better than nothing

Dazed_and_C0nfused

Wolfy197216 said:

WitsEnd101 said:

So, are the people who didn't opt out now kicking themselves or do they get additional SP to compensate?

from what i understand which is quite a small amount, no i don't think they do... they get the 230 plus anything they have contributed to a private pension whereas we have a nice little pension pot on top of the 230 which we haven't had to contribute towards from our own wallet.

I'm sure that is the case

I think timing plays a part.  Someone could have been building up towards a large State Pension under the "basic" State Pension rules but then when the rules changed to introduce the new State Pension they could have them benefit limited to £230.25/week at current rates (assuming they hadn't already accrued more than that).

Cobbler_tone

I got an £18k boost into my DC pot (now transferred into my current one) from signing a piece of paper with some dodgy looking guy in a suit. I can remember him walking down our yard when I was 18 in 1987. Never understood what SERPs was and what I was signing but everyone else signed it. I almost lost the paperwork and contact with RSA at one point during a house move but thankfully chased it up one day and glad I did. I have already qualified for the full state pension and did so some time ago with no gaps.

Wolfy197216

Cobbler_tone said:

I got an £18k boost into my DC pot (now transferred into my current one) from signing a piece of paper with some dodgy looking guy in a suit. I can remember him walking down our yard when I was 18 in 1987. Never understood what SERPs was and what I was signing but everyone else signed it. I almost lost the paperwork and contact with RSA at one point during a house move but thankfully chased it up one day and glad I did. I have already qualified for the full state pension and did so some time ago with no gaps.

Nice Cobbler mine is up to 22k with a 31k bonus apparently once i hit retirement age (if i make it that long) so i thin we made the right choices when we were younger

WitsEnd101

Wolfy197216 said:

. its not a huge amount of money but £400 per month is better than nothing

Not to be sniffed at - £400 / month is my beer money plus some. 

I remember at the time being at Uni with the industrial placement year was coming up. There was a lot of discussion about whether to opt out of SERPS or not for the work placement. From memory it was rougly half who did so. So glad I was one of them.

molerat

Those who were not contracted out and retired prior to 2016 could receive up to £398.55 per week, £176.45 basic and up to £222.10 additional pension.

Wolfy197216

molerat said:

Those who were not contracted out and retired prior to 2016 could receive up to £398.55 per week, £176.45 basic and up to £222.10 additional pension.

But from 2016 didn't they scrap the second pension and just make it into the one pension which we know now.