Contracting back into SERPS will depend on your individual ciircumstances. However in most instances these days it is worth contracting back in. Some of the reasons are related to Stock market returns and sliding Annuity Rates, against SERPS guarantees. The counter argument is that if you are contracted out, you have control over when you take the annuity. The funds can also be written into Trust/expression of wish, to keep them outside your Estate for IHT purposes. I agree with R1Geezer, talk to an IFA.