SERPS, also known as the State Earnings Related Pension Scheme was a pension scheme operated and managed by the UK government up until April of 2002. It no longer exists, and in its place we now have something called the Second State Pension.
Over a decade ago now, UK consumers were given the option to opt out or contract out of SERPS by their financial advisers – however, it didn’t suit everyone to do this, and only now are people starting to see that they might have made an error depending on their own personal circumstances.
This has the potential to affect millions of people in the UK, as huge amounts of people left the Government’s SERPS top-up pension scheme with the hope that they could instead use personal pensions that would give them higher returns. Many of those people are now facing up to the reality that they might be losing a lot of money.
Some of these people could be justly entitled to compensation for the mis-selling or mis-management of their SERPS account. Thankfully if this does potentially affect you then we have a superb legal partner firm of solicitors who specialise in SERPS compensation, and who recently launched their new website specifically to help people make mis-sold pension claims.
Use the Expert Pension Claims Solicitors
If you would like to know or find out more about how they could help you then we advise and recommend that you visit the Expert Pension Claims website. To do that please click here. All of their solicitors work on a no win no fee basis, and offer a free consultation to all callers who are concerned that there could be an issue with their personal pension plan as a result of bad financial advice or mis-selling.
This service is particular relevant given how the leading and global accountancy firm PricewaterhouseCoopers has recently described the mis-selling of pensions and in particular SERPS compensation cases as a massive potential financial scandal. This is what they were quoted as saying:
“The problem is that up to 5 million people were persuaded to contract out of SERPS and into personal pensions in the hope that stock market returns would deliver a larger pension than they would have got through staying in SERPS, which stands for State Earnings-Related Pension Scheme.”
In simple terms, SERPS pensions were based on an actual person’s wages (earnings) instead of possible stock market returns – which incidentally would have given a far larger pension sum. Unfortunately though these future projections of calculations have not worked out as expected because of the recession and then fall in share prices that the global finance markets have seen since 2000.
Deborah Cooper of actuary William Mercer believes there is a problem developing:
“Many pensioners are now less well off than those who retired at the end of the twentieth century, leading to greater calls on means-tested benefits.”
How many people do they think have been affected? Believe it or not it could be as high as five million, which could make for a lot of SERPS compensation claims from people who opted or contracted out.
If you would like to check for yourself or get one of our partner solicitors to look into matters for you then visit their webpage regarding opted out and contracted out matters. Once you have read through the information call them on their free phone telephone number to get started. Here’s that link for more information and details:
With up to five million people having opted out with money redirected into personal pensions then there could be a huge amount of people at risk of not having the pension they thought they would come retirement age.
We will leave the last word to PricewaterhouseCoopers who give an example online of the type of person this could mostly affect.
“Someone reaching 65 this year who contracted out for five years in the late Eighties or early Nineties. Having followed the stock market up to the top of the hill and back down again, their pension is about £420 a year. But their dull and boring SERPS pension – that they voluntarily forfeited – would have been worth £720 a year.”
This certainly gives some food for thought. Get in touch with Expert Pension Claims should you wish to discuss further. With many years of experience and over £70 million pounds worth of compensation already won for their clients they are the number 1 UK choice for SERPS compensation and claims regarding mis-sold pensions.