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What is involved?
- We will help you to decide if this is appropriate for you.
- We will help you to choose a private pension scheme
- We will take care of all the paperwork
- We will advise you on where the money is invested
- We will review your pension regularly to ensure that it continues to meet your requirements
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How much does it cost?
- Stirling House IFAs offer the option of both fee based and commission based advice and a combination of both, to set up and advise
you on an ongoing basis in respect of your pension.
- Prior to you proceeding with our service we will let you know your exact cost.
- All costs of advice are detailed on your illustration.
- Whichever payment method you choose; An initial administration payment of £25.00 is required to prepare the documentation.
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How much is it worth?
- This varies on a number of factors including your age, earnings, when you take the lump sum and the investment performance throughout.
- Please look at our example, the client there is projected to have a lump sum of £5400 on his 65th birthday.
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How long has this been available?
- the process of contracting out of the state second tier pension scheme has been available since the inception of SERPS, the state earnings
related pension scheme, the predecessor to S2P.
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What happens if I stay as I am?
- You will recieve your S2P payments from the state after your retirement age. Please remember that your state pension age is increasing
meaning; that you will not have the option of drawing your pension any earlier than this age.
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Will I still get a basic state pension?
- Yes!! The (maximum) basic state pension is £90.70 in 2008/09 and is increased in line with inflation.
- In redirecting your S2P to a pension of your choice, you still get your basic state pension.
- For a forecast of your basic state pension go to www.dwp.gov.uk
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Can I take the whole fund as a lump sum?
- Possibly, if you do not have any other private or personal pensions in place, it may be possible to take the entire fund value as a lump sum.
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Will I pay less national insurance?
- No, instead of receiving the basic state pension and S2P pension the state when you retire, you will receive the basic state pension and have a pension fund from which you can a lump sum and/or income.
- You will not see any difference to your income and national insurance deductions now.
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Will my employer know?
- No, your employer collects your National payments in exactly the same way as they do presently. They pay them to the national insurance office, and the national insurance office pays the rebate into your pension annually.
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When will the payment be made?
- The national insurance office makes a payment once a year to S2P pensions, sometimes they make proportionate payments throughout the year.
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My quote only shows three years worth of payments?
- S2P is likely to change again in future years, it is unlikely to change before the end of the next parliament (around 2012) However, if you do wish to proceed with this process, we recommend that you do so as soon as possible as rebates will stop in the future.
