Get a better deal. Call us on 01236 421422

At Retirement Solutions
Did you know that 'saving for retirement' and 'income in retirement'
are not the same thing?
Get a Free Consultation

Pension advice in Glasgow and Lanarkshire/h1>

Contracting out of SERPS.

If you ever Contracted Out of SERPS – most likely with an Insurance Company – this contracting out arrangement came to an end in April 2012. 

Since April 2012, anyone who was still contracted out, was contracted back in to the State Second Pension.

Since April 2016, the State Second Pension has been replaced with the Single Tier Pension – a flat rate state pension that is based on the level of National Insurance contributions over your lifetime.

At Affinity, we would urge everyone to undertake a review of their contracted out arrangements, especially if this hasn’t been done for some time. Now that contracting out has been abolished, it has resulted in some fundamental changes to what you can do with your fund.

When did you last review your plans?
Did you know that the company who manages your Contracted Out pension applies an ‘Annual Management Charge’ to do this? That’s a charge taken directly from your pension fund – regardless of whether any growth is achieved or not.

Since 1988, much of this Contracted Out money was invested in ‘With Profits’ funds. Did you know there are companies who have applied a ‘no annual bonus’ policy on their With Profits fund for years? In many other instances, there is a little annual bonus being applied but it can, in some instances, be barely more than the charge that is being taken.

Management Charges coming off your fund with little or no bonus being added seems less than ideal.

Contact Us for a free, no obligation review of your plan and we will provide you with up to date, accurate and jargon free information.

At Affinity, we are completely Independent which means the information you receive will be completely impartial.

People We’ve Helped

We got really comprehensive advice and we were kept well informed every step of the way. I will certainly recommend your company to others.”


Get In Touch

Give us a call on 01236 421422 anytime or email us at for more information on how we can help you enjoy a better financial future.

What Affinity will do for you

We’re completely independent and totally unbiased. You will ALWAYS get the best possible deal.

You get first class FACE to FACE advice. We build really effective long lasting relationships

We’re really easy to deal with and have helped 1000’s of people all over Scotland get a better deal.

Close Menu