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Should I contract back in

I left the UK for Australia 10 years ago with no intention of returning for work. I have about 10,000 pounds in Standard Life contracted out pension. My options seem to be

  1. Leave the money with standard life (obviously no new contributions) and hope that the profits far outway the admin costs.
  2. Contract it back in and get some sort of pocket money when I retire (Im 40 probably retire 55-60)
  3. Transfer it to Australian super - Not highly trustworthy as the government is continually changing the regulations and tax rules.

Any advice ?

Reply to
wilekayote
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I believe being contracted in or out is an attribute of your current employment, which means that either you're contracted in (meaning you pay a slightly bigger rate of NICs and clock up an entitlement to SERPS, S2P, or whatever they call it this month) or you're contracted out (meaning you pay slightly lower rate NICs and are expected to make a private pension arrangement). In both cases you're still entitled to the basic state pension, of course (provided you have enough qualifying years).

I don't think you can "contract back in" retrospectively, and unless you're going to work in the UK again the question of contracting in cannot arise.

So if (2) is out and (3) is unattractive, (1) it is, then!

Reply to
Ronald Raygun

It should easily do that if you're invested in an index tracker within a stakeholder personal pension where there is a 1%pa cap on fees.

My protected rights (ie contracted out) are in exactly that. Long term the real (above inflation) growth rate is around 6%.

What type of pension is it pension ? What's it invested in ?

Ideally I'd be looking to move it to a SIPP [1] and invest in high yielding shares [2] which, over the last 30 years, have given real return of 10%pa [3].

hth

Daytona

[1]
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£100 setup, £0 annual charge. [2]
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[3]
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327587
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327450
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324246&sort=whole#10325222
Reply to
Daytona

Now what do they always tell you about past performance ? :-)

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Reply to
Miss L. Toe

Good article thanks.

I'm sure I've seen a scatter graph (Barclays Capital Study?) showing that there is a correlation between returns and P/E over x? period.

I agree that value investments have had an abnormally good run since the low point in April 2003. It's reached the point where it's become easy to make money.

I thought that growth investing only outperformed during booms, during busts and normal up-down periods, value was better.

Know of a graph site where the FTSE High and Low yield indexes can be compared ? Would need history going back several cycles.

Section 2 of the 2003 Virgin/WM Company study of style investing is interesting, but over too short a period.

Daytona

Reply to
Daytona

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