Funkii Munkii

I want to pause my pension payments for a year, before I do that I have the obligatory letter about opting back into Serps, any benefit in opting back in or just stay out ??

Scooby Snacks 23

How old are you?

Funkii Munkii

39

Tiggs

in

jasey

Opt back into Serps and hand over your pension to the government.

They'll either spend it on the current pensioners or tax it to hand out to the NHS Management.

I chose to stay opted out for now .

Funkii Munkii

1 in 1 out
just need a shake it all about now

Scooby Snacks 23

SERPS (State Earnings Related Pension Scheme) disappeared a few years ago and was replaced by the S2P (Second State Pension).

If you're 39 now, stay out of it. Do you really think there'll be much of a state system when you reach 70 (yes, I know the current State Pension Age is 65 for us men, but it'll by 70 by the time you reach 65, I guarantee it!!).

Robert Rosario

Depends on how much you earn, no longer an age related decision as it used to be with SERPS.

There is no correlation with state scheme in argument of whether to be in or our of S2P.

It is more to do with your earnings, whether or not you are prepared to take on responsibility for second tier state pension provision yourself, or leave it to the government. Up to you!!

Look on www.unbiased.co.uk pick and adviser close to you, and get some advice.

If you are pausing your payments for a year, there could be other areas of your financial life which need looking at.

Tiggs

you will need over 7% pa from a private pension to beat s2p.

as above, earnings are the key factor now.

Jay m A

iTrader: (2)

I'm still unconvinced that any of the governments over the next 30 years are going to a better job with my pension than, say Standard life.

Why should s2p be any different? My mind is not completely closed on the subject though - Tiggs, how can s2p definately return 7%? I'm a tad sceptical on aims vs reality 12, 20 or 30 years down the line. Then again same with private pensions I suppose.

Funkii Munkii

Thanks for all of the responses.

My ISA has been doing very nicely over the last 18 months or so, would it not be better to pile all the pension cash into an ISA?? and let that ride for another 25 years?, better still invest in property......

davegtt

If your thinking of property as an investment Id sit tight for a couple of years and see where the market moves, its nto going to go any higher thats for sure so better keep saving and earn interest for the forseeable future IMO

Just been pondering on my pension recently, considering scrapping the idea myself and saving in ISAs but reckon once I hit a nice figure I'll probably go and blow it