In or Out - I need help!

Sevster

Hi

I have had a personal pension with Scottish Widows now for about 8 years and have been paying £60 a month since it started (I was supposed to increase this as time went on but that didn't happen). I was advised to opt out of SERPS.

If I stop paying into the pension (as it really is going nowhere and I'm now 37) is it wise to opt back in or if I stay out does the government continue to pay the contributions even if I'm not? I don't really know how it all works with the in or out business and would appreciate a kick in the right direction.

I will obviously need to have an alternative plan for retirement if I stop paying into the plan but I can only make a decision once I have an idea of how the damned thing works!!

Many thanks

dunstonh

The vast majority should really be looking to contract back in now.  Only if you have a pre royal assent 1989 pension, which you havent, should you perhaps have a reason to remain contracted out.    

£60pm isnt going to generate much income.   Before you consider ceasing that one and looking at an alternative, you should check the charges and allocation rates on the existing plan as some scot widows pensions had upfront charges of around 18 months contributions but then gained an increased allocation on the monthly premiums.  This means that you needed to keep these ones running to benefit from lower charges over the term. However, the charges cold be higher or there may not be much in it. Only checking the details of your plan will give the answers to that.