In a recent initiative between the Association of British Insurers and pension providers, thousands of policyholders with contracted out pensions are being contacted. The decision of whether to or not to contract out has always been a tough one. With the change from the State Earnings Related Pension Scheme to the State Second Pension the decision is even more complex. In fact, the new initiative is designed to highlight that many people who remain contracted out will be worse off in retirement.
Our View
The letters you receive through the post from your pension companies should not be ignored.
There is a real chance that you will lose out at retirement if you do not take advice and do nothing.
Learn more about Contracting Out in our State Pensions Centre.