Contracting out of S2P

ffacoffipawb

This facility is being withdrawn in 2012 or thereabouts. I am a company director on a low "salary" of £6,000 (and big dividend).

I would like to contract out for the remaining available time (bird in hand etc), but I cannot see who sells these products. eg L&G do stakeholder and PP but no mention is made of contracting out.

Who will provide a CO personal pension (I already have a SIPP for my real money - TV from a CIMP plus £234pm net contribution) for this little extra amount.

(I am mid 40's so prob not best advice to contract out, but I still want to do so as then I will control the money if I can it. It is probably peanuts compared with the rest of my pension record - SIPP and 2 deferred contracted-out final salary pensions that are staying where they are).

Thanks

dunstonh

If your income for NI purposes is just £6k then its not worth contracting out. You are also mid 40s and you are correct that also makes it worth not contracting out. You are above the age and below the income and unless you are hoping for 25% returns a year every year then you will lose money.

Every provider still offers contracting out on their pensions but many have removed it from their direct products and class it as an IFA product (meaning its up to the IFA to take the risk of liability or not) or you have to ask them for the right application so it is fully documented that you approached them.

ffacoffipawb

Thanks dunstonh, I won't bother then. Rebate will be low anyway.