The next big pensions “rip off”?

From April 2012 you will no longer be able to exercise a choice about whether to remain contracted-out of the State Second Pension Scheme (previously called SERPS) because the Government has decided that you can’t be trusted to make the right choice.

In their infinite wisdom they have decided that all of us should be members of the State Second Pension Scheme (known as S2P) and if you are currently contracted-out you will be automatically contracted back in.

No longer will you be able to choose when to take your benefits – any benefits built up after April 2012 can only be taken when you reach State pension age which itself is being put back to age 66 from the current 65.

Do you trust the Government (of any colour) not to put it back even further?

From April 2012 you will no longer be able to exercise a choice about whether to remain contracted-out of the State Second Pension Scheme (previously called SERPS) because the Government has decided that you can’t be trusted to make the right choice.

In their infinite wisdom they have decided that all of us should be members of the State Second Pension Scheme (known as S2P) and if you are currently contracted-out you will be automatically contracted back in.

No longer will you be able to choose when to take your benefits – any benefits built up after April 2012 can only be taken when you reach State pension age which itself is being put back to age 66 from the current 65.

Do you trust the Government (of any colour) not to put it back even further?

Even more importantly do you trust them to pay it to you at all?

The implications of what they are doing to your pension choices are far too numerous to go into here but you should ask yourself:

  1. Are they doing this for my benefit or theirs?
  2. Does this give them the opportunity to renege even further on benefits that have promised for many years?

I know what my response would be!    

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