Cameron Financial Services is regulated by the Financial Services Authority




Serps (State Earnings Related Pension Scheme) or State Pension 2 as it is now called is an extra top up pension that is dependent on your National Insurance Contributions. There is much debate over whether you should contract in or out of SP2.

There is no financial advantage for contracting out and if your decision were to be based purely on monetary terms then you should contract back into SERPS/SP2. However, there are subjective a personal reasons why you may wish to remain contracted out:

You do not trust the Government and would prefer to have the money under your own control despite the risk that you will probably have less pension at retirement.
If you die before retirement the contracted out money would go to your spouse / estate.
You can take the benefits at 60 rather than 65. From 2006 you may be able to tale them from 55 though this fact is not certain and is subject to the final ratification of the new Pensions Act.

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