For those who had opted out of the Second State Pension (SERPS - or what ever other name you have known it by) there may be a shock coming when they come to receive their pension.

Many civil servants, and others typically in final salary schemes were 'opted out' of the Second State pension - an amount included in the state pension of around £30 per week.  What this means, is that instead of receiving £155 a week as their pension,  they may receive less than £120.

Opting out, as was, effectively redirected some of their  National Insurance contributions from the Second State Pension, and into their employers pension - so the benefits have not necessarily been lost - just accrued  elsewhere.  Having said that, to many, they may feel slightly hard done by, receiving around 80% of someone who didn't opt out.

The good news, is that something can be done about this, by making additional National Insurance contributions. This of course needs to done with a great degree of consideration, but, from the figures shown in the article below, a contribution of £733 could bring an increased annual pension of £231.40 (£4.45 per week).

Of course, as always with these sort of calculations, there is a gamble as to whether you will live long enough to make it worthwhile.

Together we can bring some Serenity to your life