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83% Of L&G clients want to stay contracted out of S2P

by James Salmon

Legal & General says early response to a mailing to contracted-out customers show that 83 per cent have chosen to remain contracted out of the state second pension.

The news comes as several firms, such as Norwich Union, continue their policy of mass contracting-in of customers that have failed to respond to correspondence presenting them with the options.

The mass tactics have been criticised by L&G pensions strategy director Adrian Boulding, who says people contracted in without their knowledge may have grounds for a misselling complaint if they lose out as a result.

But NU says it has done everything possible to make customers aware of the options.

L&G says claims that people wanting to maximise the pension they can expect to get at state pension age are more likely to achieve this by contracting back into S2P.

But remaining contracted out gives customers more flexibility on taking benefits, before state pension age.

Boulding says: “On the basis that those who reply quickly usually have the strongest views, the results vindicate our stance on the importance of giving customers a choice regarding contracting out.”

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