Case Study 2 - The Undervalue Cash Equivalent Transfer Value

Background

Our client, Mr S approached us with a cash equivalent transfer value (CETV) for his ex wife’s pension valued at £90,000.
His pension had been valued significantly higher but both parties were members of the same pension scheme.

Concerns

He felt that the current CETV significantly undervalued the pension benefits of his ex wife.
His pension was in payment and his cash equivalent of benefit (CEB) calculation was overvaluing his pension benefits.

What We Did

We instructed an actuary to independently and professionally assess the current value of the pension.
We reviewed the CETV to ascertain what benefits it took into account.

The Results

Increased the valuation to £145,000.
He was able to enter the negotiations with more confidence knowing that the pensions had been independently and expertly assessed.
Ultimately, he was able to defend his pension benefits by increasing the value of her benefits.

What Our Clients Say...

His attention to detail was impressive...

“Phil has shown much patience and knowledge in helping me plan for my future after divorce, being so close to retirement. Despite unusual circumstances of distance, he rose to the occasion leaving no stone unturned with regard to either his professional responsibilities or my future needs. His attention to detail was impressive, always maintaining regular contact. He approached weighty matters with gentle humour when needed to offset my initial nervousness in decision making.

I was given as much time as I needed to read the paperwork involved and ask questions. I was stunned when I was advised by him to apply for the State Pension, an area in which I had no knowledge at all and Phil showed his true value with his directness and I found in conclusion that the system is not so hard for the lay person if one trusts the person giving the advice.
I waited until I was back in the UK before I submitted my decree absolute to the Department of Work & Pensions and they had already given me a basic pension. I logged on to my current account and they had given me a lump sum back payment now that they are using my ex’s contributions that was a wonderful surprise as you may imagine! It has almost quadrupled the original sum they were paying each month”

Mrs Cole - Hampshire