Are there any downsides to S2P?

One little reported change in the move away from Serps concerns inheritance rights. Under the old regime up to 100 per cent of a Serps pension could continue to be paid out to a spouse after the holder’s death. Now the maximum that can be paid is 50 per cent with the exact proportion depending on when you were born and your age on retirement.



The Government’s Pension Service has produced a booklet called Inheritance of SERPS which gives more information. You can download a copy at www.direct.gov.uk. Inherited rights to S2P can be paid to widows, widowers and surviving civil partners.