ALMOST 90,000 people rejoined the state second pension (S2P) after Britain’s largest insurers warned customers to reconsider their move to opt out of the government system.
In a further boost to the S2P, Resolution Life said that it would automatically move 50,000 policyholders back into the state system.
Yesterday, Britain’s biggest insurers said that thousands of customers had rejoined the S2P. Most were prompted by letters from all UK insurers in November. The insurers were concerned that the rebates offered by the Government to contract out of the S2P were not sufficiently valuable to justify leaving the system.
Norwich Union, Britain’s largest insurer, said that 26,500 of its 265,000 policyholders had decided to rejoin the S2P. Prudential automatically moved male policyholders aged over 60 and females aged over 54 — about 5,000 people in total — back into the S2P. About 20,000 policyholders who received letters from Legal & General had rejoined.
Standard Life said that it was sending a second letter to policyholders, asking them to reconsider their decision to opt out of the S2P. About 37,000 policyholders rejoined the S2P after receiving its first letter last year.