I do not feel that the pivotal age is the only factor which should be
taken into account in recommending whether one should or should not
contract out of Serps. For example, there are several other factors that
are highly relevant:
1. If one were single, contrac-ted in and died even one day before their
official age of retirement, all of their Serps pension earned would be lost
to the State. The effect of premature death benefits the State.
2. If contracted out, the benefits can be drawn com-mencing between the
ages of 60 and 75, thereby providing for much greater flexibility.
3. Pension fund withdrawal is available. That could provide more options
in the event of death during retirement prior to age 75.
Therefore, the recomm-endation should not be made based on the pivotal age.
Client Care Financial Services,