From: Terry Harper 
Newsgroups: uk.finance
Subject: Re: Contracting out of SERPS
Date: Thu, 08 Dec 2005 00:07:56 +0000

On Wed, 7 Dec 2005 21:13:55 +0000, Gordon 
wrote:

>Alex  wrote
>>At 14:11:28 on 07/12/2005, alfi286@aol.com delighted uk.finance by announcing:
>>
>>> As I understand it, contracting out of the second state pension would
>>> reduce NI contributions from 11% to 9.4%.  I am 25 and currently pay
>>> about £260 per month NI.  Am I likely to be better off pensionwise
>>> contracting out of this and putting the extra money into my stakeholder?
>>
>>I believe the general response to this question is: *shrug*.
>
>Yes, it's boring, isn't it.    The contributions I paid whilst 
>contracted into SERPS increases my State Pension by about 70%.

The maximum you can get in the future is the equivalent of about £110
per week extra, which is 130% extra. Those retiring today get even
more if they have always earned above the HEL.
-- 
Terry Harper
URL: http://www.btinternet.com/~terry.harper/