Pension Sharing Order Query...

WoodfordWarbler · 12 September 2017 at 10:09PM

Hello, I have a pension sharing order which requires to transfer my share of my ex-husband's pension. I chose to put this sum in my small personal pension pot with Scottish Widows. They have told me to seek an IFA to implement this. Can you outline the normal procedure that an IFA has to go through and give an indication of: a) average fee charged by IFA and b) average fee charged by pension provider for receiving this .

In addition is it part of an IFA's brief to shop around for the best pension pot available at the same time? This was 1 comment by an IFA that got back to me from Unbiased.co.uk.

Finally the pension order stipulates it must be implemented within 4 months, my ex did not begin his side until almost outside this period we have now overun it. How, if at all does this impact on us now?

Much appreciated for your time reading this.

dunstonh · 12 September 2017 at 11:38PM

Can you outline the normal procedure that an IFA has to go through and give an indication of: a) average fee charged by IFA and b) average fee charged by pension provider for receiving this .

IFA business models vary and prices vary. Rural firms tend to be cheaper than city. The range is likely to be big. So, dont accept first price.

In addition is it part of an IFA's brief to shop around for the best pension pot available at the same time? This was 1 comment by an IFA that got back to me from Unbiased.co.uk.

Yes. That is one the points of using an IFA. They do all the work for you.

Finally the pension order stipulates it must be implemented within 4 months, my ex did not begin his side until almost outside this period we have now overun it. How, if at all does this impact on us now?

The court order may need to be refreshed. Check with your solicitor. The pension company will need the original court order and it will need to be in order.

xylophone · 13 September 2017 at 9:43AM

http://www.thisismoney.co.uk/money/pensions/article-4861408/How-60-ex-s-pension-awarded-divorce.html

You may find the above of interest.

TBagpuss · 13 September 2017 at 11:40AM

WoodfordWarbler wrote: »

Finally the pension order stipulates it must be implemented within 4 months, my ex did not begin his side until almost outside this period we have now overun it. How, if at all does this impact on us now?

Much appreciated for your time reading this.

Are you sure about the timing? Normally the wording requires the pension company to implement within 4 months but the time starts to rn from when they have all the documents they need (normally, the order, the decree absolute, any fees due and any additional documents such as proofs of ID)

as long as your husband is not drawing the pension it should not disadvantage you, as the pension share will be based on a % of the value and the value is calculated when the order is implemented, so if there is delay, it normally just means that the % is worth a little bit more in cash terms - if your husband is still paying into the pension then the delay works to your advantage!

You normally don't *have* to have an IFA - you can have the money paid directly into an exisiting pension, but it's sensible to get advice to get the best product for you. A lot of IFAs will do an initial meeting without charge or for a fixed fee so you can g ask them about further costs.

WoodfordWarbler · 14 September 2017 at 12:06PM

Thank you all for clarifying the normal process and outlining the introductory session.

I wish I had done the homework before. Neither my ex or myself are old enough yet to begin to access the pot so it will continue to accumulate.

The timed mentioned is 4 months from April for implementation. My ex seems relaxed about this. So we will see if it needs refreshing by the time I am ready to commit.

Current average fees cited by 1 Essex based IFA is..'... full advice up to 3% of the initial investment (£200,000 x 3% = £6,000), but less complex I= limit the 3% to the initial £100,000 and 1% on the balance over £100,000 (£4,000) plus an ongoing annual service charge of 1% which is our standard service proposition and most popular proposition (£200,000 x 1% = £2,000).' Is 1% normal for an ongoing annual service charge by an IFA? What is the normal percentage for the pension provider to charge for accepting this? 1-3%? Just trying to still fill in the financial gaps.

Do you recommend meeting face to face? This is a problem for me with working full time and no leave in sight. T

Thank you all again, S

dunstonh · 14 September 2017 at 12:44PM

, but less complex I= limit the 3% to the initial £100,000 and 1% on the balance over £100,000 (£4,000) plus an ongoing annual service charge of 1% which is our standard service

£4000 is too high. Half that amount or better is your target.

As for ongoing, 1% on smaller amounts is typical but you expect tapering off as that value gets bigger (i.e. heading towards the most common IFA figure of 0.5%).

Do you recommend meeting face to face?

Face to face will see the IFA question you and record the responses. Non-face to face will require you to fill in the questions. So, its a different process. If you dont mind form filling, then non-face to face is fine.

Pension Sharing Order Query...

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