31 May 2007
The Financial Services Authority has issued new advice to
individuals who may have made a mistake by opting out of the state
second pension (S2P). The FSA is concerned that men who were over
45 and women who were over 40 at the time they contracted out were
making a potentially bad decision that should have been identified
at the time.
The FSA's pamphlet offers guidance on what individuals should do
if they were above the relevant age limits at any time between 1
July 1988 and 5 April 1997. The FSA recommends that anybody falling
into this category who were also advised to contract out without
any particular reason for doing so should complain to the company
that gave them the advice and seek compensation.
The FSA said: "If you were above the pivotal age, advice to
contract out was likely to be wrong, unless there was a particular
reason that outweighed the likely disadvantage." The FSA, however,
warned that people who made their own decision about contracting
out without taking advice or went ahead despite being advised not
to do so will have no grounds for complaint.
