serps????

[ilovemarkb]

my dad advised me to contract out of serps (when he was an insurance man) probably in the late eighties. I am ashamed to admit that i dont have a clue what it is or what ive done! please can anyone help me understand???

[R1Geezer]

You will have some sort of private personal pension, probably unit linked. At the time this was common but it turns out to have been bad advice. People who stayed in serps have done much better. Still, 20/20 hindsight eh?

[ilovemarkb]

Thanks i am 42! would it be advisable to cotract back into serps I dont no what to do or indeed how to do it!!

[R1Geezer]

It depends on your circumstances, you need to talk to an IFA.

[DocHH]

Contracting back into SERPS will depend on your individual ciircumstances. However in most instances these days it is worth contracting back in. Some of the reasons are related to Stock market returns and sliding Annuity Rates, against SERPS guarantees. The counter argument is that if you are contracted out, you have control over when you take the annuity. The funds can also be written into Trust/expression of wish, to keep them outside your Estate for IHT purposes. I agree with R1Geezer, talk to an IFA.

[buildersmate]

Read this.
http://en.wikipedia.o.../State_Second_Pension