Case Study 4 - Pension Sharing

Background

  • Mrs C, aged 58, had been granted a 25% pension share in relation to her ex husband’s British Aerospace Pension Scheme benefit which was already in payment.7
  • Mrs C was a member of the Merseyside Pension Fund, part of the Local Government Pension Scheme and wondered whether this should be the destination for her pension credit.
  • She was extremely risk adverse and likely to retire at age 65.

Concerns

  • Mrs C was unsure of how to deal with the pension share on divorce.
  • She was concerned about her options, what benefits she was entitled to and where the pension credit should be placed.
  • If the pension had to be transferred to a individual pension how should this be invested.

What We Did

  • Provided a comprehensive overview of the options on divorce, explained why some options were not available to her and discounted others as inappropriate.
  • Advised her to transfer her 25% pension share to a personal pension arrangement in her own name having discounted the other options.
  • Undertook a psychometric risk profile exercise (see www.FinaMetrica.co.uk) to develop a more rounded understanding of her risk tolerance and built a suitable asset allocated investment strategy.

The Results

  • Mrs C has a pension entitlement in her own right with the flexibility to draw benefits as and when she wants.
  • She has a full understanding of the risks in her pension and what benefits she will be entitled to at retirement.

What Our Clients Say...

I can look forward to retiring safe in the knowledge that I have the settlement terms I wanted...
“I was introduced to Phil O’Connor by my divorce solicitors, Stephensons. He assisted me in deciding how to approach the complex issues of my pension settlement. He provided clear and unambiguous advice and direction which enabled me to settle sooner and more cost effectively than I thought possible.
I can look forward to retiring safe in the knowledge that I have the settlement terms I wanted.”
Mrs H - Worsley

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