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Serps question.

I dont understand it - and would just like some clarification please.

About 18 years ago I opted out of serps - because i was told it was best, I hadnt got a clue of the difference between serps and Turps but thats what I did. I have been self employed for about 9 years. I received a letter the other days from Prudential telling it me it now may be advisable to opt back in. I havent got a clue if I can or cant, should or shouldnt. Had a quick word with my FA and he then proceeded to talk to me in an obscure language involving % and £ and P.A. My eyes glazed over, my brain went on shutdown and I felt the need for a wee.

Can anyone, in English, offer some advice.

I am now 45 and still self emplyed with a crap pension.

Thanks in advance.

Comments

  • dunstonh
    dunstonh Posts: 121,226 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    As you are self employed you are only contracted out on paper. Not on real life.

    Self employed individuals dont qualify for SERPS/S2P. You are heading only for the basic state pension (£4700 a year). Even if you are contracted in or out it makes no difference. So, you may as well contract back in to save paperwork. Plus, you have hit 45 which is the age it is best to contract in.
    I am now 45 and still self emplyed with a crap pension.

    Might be an idea to change to a decent pension with decent funding as £4700 a year plus your own provision is what you are heading for.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ''glazed over'' hmm...sounds familiar
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