what type of pension scheme?

susannah123

I am about to receive aprox. £29,000 in a pension sharing settlement following my recent divorce, and I would appreciate some advice on my options.
I am nearly 60 years old and I have rheumatoid arthritis which is a problem at the moment.
I returned to full time work about 15 years ago for local government and started paying into a pension scheme for the first time then.
I am not allowed to leave the money in my ex husbands scheme or transfer it into my local government one.
I am hoping to work until I am 65 but this may not be possible as my arthritis has been pretty bad for some time.
The existing scheme now needs to know where I intend to put this money and unfortunately I haven't a clue so would be grateful for any advice.

EdInvestor

Do you have any thoughts about what you will do with it when you retire - which sounds as though it may be quite soon?The choice of pension now might depend on which type of retirement income you think you will opt for later.

Would you be likely to convert the fund ( after the 25% tax free cash lump sum) into an annuity where you give up the fund in return for an income for life?

Of would you be more likely to use "income drawdown", where you leave the money invested and take an income from it?

BTW it should be possible for you to take the 25% tax free cash lump sum out now, and leave the remainder to grow until you retire if you want to (always assuming your husband hasn't already taken the cash, of course.)

Debt_Free_Chick

You will need to set up a private pension plan to receive the share of your ex-husband's pension.

This can be a stakeholder pension, a personal pension or a self-invested personal pension.

For the amount of money involved, I doubt you will reap the benefits of a self-invested personal pension (SIPP). These are really for those who want to manage the way in which their pension is invested - it doesn't sound as though that's a priority for you.

So you probably need to look at a stakeholder pension or personal pension. Essentially, they are pretty much the same, but some individual features may be slightly different.

You will either need to do some research yourself or, if you do not feel confident about that, consider getting independent financial advice.

Alternatively, post back with further questions.