Contracting out of SERPS / S2P

Many investors were advised to contract out of SERPS when they were too old for this to be financially advisable. This was roughly over age 40 for females and over age 45 for males at first opting out.

Many are now reaching State Pension age and finding that their State Pension retirement information shows how much SERPS they have lost through contracting out and that they cannot buy the same amount of pension from their rebate policy.

OAC has specialists in understanding the issues surrounding the financial impact of contracting out of SERPS / S2P having published a report, via the FSA, entitled: "Contracting out of SERPS / S2P to an Appropriate Personal Pension: a quantification of relative impact".

OAC has its own calculator designed to calculate whether there is a loss and if so how redress should be payable. It deals with all situations where the investor is still alive both before and after State Pension age and whether or not the rebate policy has been vested. OAC will produce an individual report on one off cases if requested by either the investor or the adviser. OAC can also advise on cases where the investor has died although in that situation there is rarely a loss.

Contact us to discuss how OAC can help you with your SERPS / S2P enquiry.