SERPS: Pensions

[Viney]

Okie dokie. I opted out of Serps years ago. has anyone else done/did this? Im not sure if it was the right thing to do (Now!!)

I googled it and there are all manner of companies that see if you are liable for compensation as 'you may have been missold' etc etc.

Can i opt back in if so, what happens to the money in the account?

The account has about £14k in there at the moment..hmm triumph tiger *slaps self*

So any advice gladly welcome.

[keithd]

as far as i know you cannot touch your £14k until date of maturity. you can transfer it to another pension but not get your filthy hands on the lucre

[plowsie]

S2P it's called now. I'm out with mine, thats cos there ain't gonna be one left for me when I get to that age so I "contracted out". I think (still training so bear with me) you can opt back in whenever you like.

[gerbrox]

Can you get opmatically opted back in, as that is what happened to me, I'm no expert so just let it be, was I right to do this or not?

[Luckypants]

All IFA's I speak to seem to encourage opting back in to the State Second Pension (S2P) because it is more guaranteed than a personal pension and you get a better return on your SERPs contributions. They also talk about spreading risk. Of course they say opt back in but continue to pay into a personal / company pension scheme. They then try to get you to switch your pension to another provider with a nice fat bonus for them!

Whatever happens, it won't be as good as they tell you when you come to get it.

[plowsie]

Another thing to note, your pension is unaccessable until you are 55 (could soon be 60) depending on rules...

When you hit whatever age it will be with the current rules, if you have less then £16,500 in all pensions in your name, you can have it all, but, 25% of it will be TFC (Tax Free Cash) the remaining 75% taxed at your income rate (be it 20 or 40%). If your over the £16,500, you can still take your 25% TFC as a lump sum, but the rest you can either leave, take an income (drawdown) or purchase an annuity (which in the end is compulsory at age 75(at the moment)) to take an income. There are discrepencies with purchasing annuities but don't let me start lol.

[scooby2102]

Viney, I did the same way back in 89 or there abouts

for the past 3 years when I get my annual statement, they are advising me to opt back in so if I get the same advice again this time then I will defo need to look at it

have had conflicting advice in the past so will need to tread carefully before I decide what to do

[plowsie]

Viney, I did the same way back in 89 or there abouts

for the past 3 years when I get my annual statement, they are advising me to opt back in so if I get the same advice again this time then I will defo need to look at it

have had conflicting advice in the past so will need to tread carefully before I decide what to do
Fill out one of these (http://www.hmrc.gov.uk/nic/forms/ca1543.pdf), ask your scheme administrators to do the rest, and just inform them to implement it with effect from next tax year.

[Ed]

I opted out, I was tolfd tyears ago that that was the best thing to do.

I can't see that I'm going to be any betetr off as my pension is with Equitable Life:rolleyes:

[plowsie]

The reason a lot of people have had the advice to opt out is because there is high possibilities that there won't be a state pension for long.

[Viney]

Ok, i get it so far, but what i dont understand is, is this sepertae from the state pension, so would i get an income from this as well as my 40 groats a week from the government, or would i just get an income from this alone?

[Luckypants]

the State Second Pension aka S2P (used to be SERPS) is paid in addition to the basic state pension and in addition to any other pension arrangement you might have.

[tigersaw]

Opted out in the late 80's or early 90's as far as I remember. never been advised to go return though.

[plowsie]

Well, you have the basic state that you will receive, then some additional parts then the S2P also added on top, for as many years as you are contracted out of S2P, those years S2P contribution allowances go into your (personal) pension instead of what you would get when getting your state pension. Thus your additional segments for your state pension would be smaller but your personal pension healthier.

EDIT: Basically what LP said but I forgot to press post quick reply :lol:

[timwilky]

I had a forecast some yearsago that suggested I would get a full pension,and state second pension. I never realised so it was a pleasant surprise.

Plus of course I get my company pension. It appears I never "Opted Out". probably as a result of my Leyland motors pension from76-83 being "Opt Out" I then had to opt in when I left, pay what I owed etc. at that point I was very wary of getting stuck with non transferable pensions. I know the rules changed shortly after. But after leyland motors going bang, then leyland daf, then austin rover then rover etc. I cannot trace Nuffield pensions to find if I have any entitlement from them.

My projected compnay pension is about £17,000/year. I sometimes wish I had joined it 10 years earlier

[Ed]

Because of Equitable, and because Wrekin Construction stitched me up, I think I'll be stacking shelves in Sainsbos till I'm 85. Beats keeping warm in the library:rolleyes:

[Luckypants]

Because of Equitable, and because Wrekin Construction stitched me up, I think I'll be stacking shelves in Sainsbos till I'm 85. Beats keeping warm in the library:rolleyes:

Similar story, but I have Mr. G. Brown MP to thank for that.