Government decision to end contracting out - right or wrong?

Even today, when many see it as having fallen from favour, around three million personal and stakeholder pension members remain contracted out - on top of the millions who are contracted out through occupational schemes. While it may not have made the headlines in the consumer press, the government's decision to cease contracting out from 2012 will affect the retirement planning of millions of individuals

Contracting-out. It never was the most customer friendly term, even in an industry battling to give up its addiction to jargon. But that has not stopped 7.7 million personal and stakeholder pension members from using the facility since it was introduced amid much Government publicity in 1988. Even today, when many see it as having fallen from favour, around three million personal and stakeholder pension members remain contracted out - on top of the millions who are contracted out through occupational schemes. So the Government's decision to cease contracting out through all defined contri...