Which? says research it conducted in 2005 found that almost two-thirds of people who had contracted out of S2P were worse off than they would have been by staying in.
The websites called 1stcontactnirebates.com and nirebateonline.com are owned and run by 1st Contact Financial Services and say that if you are below the age of 40 or a foreign citizen not intending to retire in the UK, you generally benefit from contracting out.
The website says that if you choose to contract out, then your rebates will be put into an Axa stakeholder pension scheme.
1st Contact says it is acting as an introducer and is taking commission from Axa for the business but Axa says it does not endorse these websites.
Hargreaves Lansdown head of pensions research Tom McPhail says: “I am wary of anybody that peddles certainty in this area because you do not know what the outcomes will be until decades hence. Our default position is that you should be contracted in.”
1st Contact Financial Services director Andrew Frank says: “Most people do not know that they have the ability to contract out. It is not widely publicised by the Government and advisers are not interested in doing this business because they are not going to make any money out of it.
“We clearly state on the website that it is not advised. We deliberately kept it conservative and low key.”
The FSA says it cannot comment on individual cases.