It comes as no surprise to read that life companies have thrown in the towel as far as providing any sort of mean-ingful guidance on contracting out is concerned.
The combination of assump-tions about what the future may hold is such a dog's breakfast (thanks to the Government's usual incessant tinkering) that they all came up with different answers anyway.
Even the PIA does not have a clue as to how they might structure a review of past advice to contract out (thank goodness) although if they are really at a loose end to justify their overheads, they will probably just make something up as the basis for another retrospective witch-hunt.
Virtually everyone more than 10 years from their state pension age who is making any sort of additional private pension provision should start to contract out without delay and remain that way for good. By the time they retire, there will not be anything left of Serps anyway or, if there is, it will be means-tested out of reach. While the Government of the day can deny you the state pension for which you may have been paying for the past 40 years, at least they cannot take back the rebates in your pension plan.
So why not milk the system now for every penny you can get and forget about Serps altogether?
WDS Independent Financial Advisers,