Case Study 9 - How to reduce pension sharing from £250,000 to £62,500

Background

  • Our client, Mr G approached us to assist with the preparation of his case for final hearing.
  • He had significant deferred pension benefits in a supermarket final salary scheme. Cash Equivalent Transfer Value = £250,000.
  • Mrs G had pension benefits within the Public Sector.

Concerns

  • Mr G was now a member of the supermarket’s group personal pension and understands that it would be very difficult to build up any lost benefits to pension sharing.
  • Mr G was aware his final salary benefits were valuable and wanted to keep as much of it as possible.
  • Mrs G was pushing for a 100% pension sharing order of his final salary benefits.
  • She was unwell and this was a realistic aim given her future earnings capacity.

What We Did

  • We produced a report showing exactly how valuable the pension benefits were to Mr G.
  • In addition, we highlighted how difficult it was for him to build up similar benefits in the group personal pension based on different pension sharing amounts.
  • We also showed the total loss of benefits as on pension sharing the benefits for Mrs G had to be transferred out.

The Results

  • Mr G had a much better understanding of the value of his pension benefits for negotiation purposes.
  • At the final hearing Mrs G was awarded 25% of his pension – £62,500.
  • His solicitor commented “given the facts of the case it was a good result for him. Your work was really helpful as it concentrated his mind on what he could potentially lose and what he would have to then put back into the pension pot.”

What Our Clients Say...

Phil is knowledgeable, efficient, pleasant...
“Navigating the intricacies of the pension system during divorce is daunting, but I found the service offered by Phil O’Connor and his team to be exemplary. Phil is knowledgeable, efficient, pleasant and seems really interested in the individual client. Everything proceeded in just the way he had outlined, and what could have been a trying process, was remarkably easy.

I’m not sure that I was either able or willing to undertake the remarkable amounts of paperwork involved in pension sharing, but all of it was handled professional and efficiently on my behalf.

Most of the time, I just had to sign on the dotted line. I wholeheartedly recommend Whitewell Financial Planning Ltd as an invaluable resource for anyone needing assistance with financial planning.”
Mrs Manford

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