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state second pension (S2P)
 S2P replaced the State Earnings Related Pension Scheme (SERPS) in April 2002 in order to provide a more generous additional State pension for low and moderate earners, certain carers and people with long-term illness or disability.
While you remain in S2P then a portion of your National Insurance contributions continue to provide an additional State pension benefit. The benefit will accrue on earnings between the annual lower and upper earnings limits. The pension would be index linked until your retirement date.
You have the option to contract out of S2P through an insurance provider. This means that you forfeit your entitlement to the additional pension from the State in return for a lump sum into your personal arrangement each year. The insurance provider would invest the money until your retirement date. Whether this would pay a higher pension or not would depend largely on the investment performance of the policy.
A brief explanation of each of the various types of Pension Scheme is available from the menu opposite >
Please be aware that past performances are not guaranteed and values can go down as well as up.
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