STATE EARNINGS RELATED
PENSION SCHEME

OK who remembers the local family insurance man hounding you when you first started work?

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Were you offered the free Government pension and a couple of quid a week collected savings plan?

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Well it was not exactly free but it did offer certain benefits and if you opted out of SERPS in the 80s and 90s you may be sat on a rather juicy pension pot.

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Basically once you started to earn money and pay national insurance then a small part was earmarked for topping up your old age pension. The Government then decided that the said portion could be redirected into a personal pension in the hope to achieve greater investment growth, and potentially more flexability to draw down before state pension age. It was an easy sell for the door to door insurance brigade who would parcel it up as the free Government pension. It did not cost anything to swap so the majority just said yes and signed. When you were in work a percentage of your NI was sent to be invested once per year, until you stopped working.

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Now the moral of our story is you probably did this when you were a lot younger and even if you came out of work, then what was already in there suposedly keept on growing.

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This can be tracked down quite easily with no obligation and a value obtained which can be reinvested, or you can take a loan against the fund!

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