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...

Phil’s assistance has been, and continues to be invaluable...
“I have been a family lawyer for nearly 20 years. Pensions have until recently been dealt with on CETV but over the last 2 years the Court’s are becoming more actively involved and now look behind the CETV to the actual benefits of schemes and how these can be properly divided on divorce.

Phil’s assistance has been, and continues to be invaluable. He has advised on a number of complex cases with significant pension assets which has meant I am absolutely reassured my client’s are being properly advised from the outset by someone who not only is clearly an expert in their field but explains things in a user friendly way. Phil assistance in an advisory capacity has helped my client’s to make sure they not only get the best result but also to ensure, moving forward, we can look at not only the pension share but where is the best place for that to be held to maximise the return.

Phil is always available to advise and answer any questions I have, including helping to decipher actuary reports to my client’s best advantage. I would genuinely and wholeheartedly recommend his services to any family lawyer and would say he should be involved in every case where there are pensions involved.”
Alison Barnes - Barnes Family Law, Liversedge, West Yorkshire

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