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...

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

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