16
Mar
2016
A question about : found old 'opt out serps' policy
When I took out my first mortgage 12 yrs ago I was persuaded to 'opt out' of SERPS. I then left the job to become self-employed, moved house and forgot this policy until recently finding paperwork in the loft. The update is that there is Ј7500 sitting in the pot. Should I 'do' anything with this? Leave it where it is?
Best answers:
- It is impossible to say because a lot depends on your age and the charges that this particular company charges.
You might find for example that because it's old that you are better off transferring the money to a new policy.
You also might find that because of your age that you are better off being contracted in.
Unfortunately there is no general answer and you need to take some individual advice from an advisor who can look at both your circumstances (mainly age) and the policy itself. - If I have been paying self employed contributions ever since leaving that job, am I not 'opted in' anyway?
- I am afraid I don't know anything about the self emplyed situation.
However I believe that if you are employed and 'opted out' then that policy will continue to get your NI rebates until you tell them otherwise. The fact that you have changed jobs is irrelevant - it is linked to your NI number.
I don't know whether it works differently for self-employed.
Can you not infer something from the amount in there?
I would have thought the amount might have indicated whether you have been reeiving payment since you left your job.
If you cannot infer anything from the 'update' you've had then I would suggest contacting the provider and ask whether it is currently receiving rebates.
If they are still receiving payment then you know you are still 'opted out'. - Serps/ S2P is not applicable to self employed so you dont have to worry about that.
it is worth investigating if you can get better value transferring into a modern personal pension or stakeholder plan. Charges are generally lower than 10 years ago
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