Individuals contracting out of the state second pension (S2P) scheme could find themselves with £4 per week less than if they remained within the scheme, sparking a possible investigation into mis-selling claims by the Financial Service Authority (FSA).
The City watchdog says it has found the majority of individuals who contracted out of the S2P or the older state earnings related pension scheme (Serps), and put their tax rebate into a personal pension, will face shortfalls in their returns. Research conducted by Oxford Actuaries and Consultants, on behalf of the City watchdog echoes research published last week by consumer association Which?, warning the 4.5m people currently contracted-out they would be around 20% worse off than if they remained in the state scheme. OAC finds those individuals contracting-out of the state scheme at...
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