My Partner contracted out of the state second pension (S2P) some years ago. He has had a letter from the pensions company (Scottish Mutual), telling him that he may be worse off if he remains contracted-out, and he should think about contracting back in.
as pensions are very confusing. Could someone explain the difference between contracting out, and being contracted in? What are the implications of staying contracted out as he is, or choosing to contract back in?
He is 46, works full time.
2007-06-06 10:42:45 · 2 answers · asked by di_ane1965@yahoo.co.uk 2 in Business & Finance ➔ Other - Business & Finance
I suggest you read what the government says in the link below. I could tell you what I know, but it appears that the rules have changed in order to confuse you more as regards to what your entitlements are.
Basically, the government have a scheme called national insurance. It is a large ponzi (or pyramid scheme) which it tries to offset some of the future liability by misselling personal pensions to the general public.
The government is not sure whether it will meet it's prior promises, or future commitments, and so it decides to change the rules. It will find that this will be overturned when the government is removed, and then all promises made to other people will be broken.
World War 1 started when Franz Ferdinand was assassinated!
2007-06-06 11:06:52 · answer #1 · answered by James 6 · 0⤊ 0⤋
Last time I looked S2P would pay me an extra £2 a week ...
2007-06-07 03:43:41 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋