Case Study 5 - Pension Sharing #2

Background

  • Mrs D, aged 60, had received a 50% pension share against her ex husband’s Wyeth defined benefit scheme. The trustees were offering shadow membership on a money purchase basis.
  • Mrs D was becoming increasingly concerned as the pension sharing annex (P1) had been rejected by the scheme trustees as being incomplete.
  • She was looking for advice on what to do next having spoken to a number of financial advisers
  • She had a previous pension entitlement from her service with a bank.
  • She may wish to draw benefits earlier than her intended retirement age of 65 to purchase a property.

Concerns

  • Mrs D was unsure why the pension sharing order had been rejected.
  • She was confused about her options and in particular whether the existing scheme, a QROPs or a new arrangement was appropriate for her circumstances.
  • She was returning to the UK from a break abroad and needed everything completing before she went back to work.

What We Did

  • Reviewed all of her options and concluded that she should transfer her 50% pension share to a personal pension arrangement in her own name.
  • Discounted the existing arrangement as the trustees would have had discretion on whether she could retire early or not.
  • Undertook a psychometric risk profile exercise (see www.FinaMetrica.co.uk) to develop a more rounded understanding of her risk tolerance and built her a suitable asset allocated investment strategy in line with this.

The Results

  • Mrs D has a pension entitlement in her own right which she understands with the flexibility to draw benefits as and when she wants without the possible intervention of anyone else.

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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