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...

Phil is knowledgeable, efficient, pleasant...
“Navigating the intricacies of the pension system during divorce is daunting, but I found the service offered by Phil O’Connor and his team to be exemplary. Phil is knowledgeable, efficient, pleasant and seems really interested in the individual client. Everything proceeded in just the way he had outlined, and what could have been a trying process, was remarkably easy.

I’m not sure that I was either able or willing to undertake the remarkable amounts of paperwork involved in pension sharing, but all of it was handled professional and efficiently on my behalf.

Most of the time, I just had to sign on the dotted line. I wholeheartedly recommend Whitewell Financial Planning Ltd as an invaluable resource for anyone needing assistance with financial planning.”
Mrs Manford

Do You Have A Question Related To This Case Study?

Use the form below to ask me anything about this case study. I promise that anything you say will be 100% confidential.

  • Some of our Accreditations & Awards