Getting pention from divorce can I take it as it's cash equivelant instead?

jetta_wales

I'm coming to the final stages of my divorce now, it's all gone smoothly and without any problems from me ex at all which is good.

The only issue I have now is that although I'm entitled to about £3,500 of his pension which is half what we put into it while together (we worked it all out as a percentage of the total that went in to the percentage of the current total). But to be honest it's of no use to me as I don't want a private pension it's just not part of our plans for the future we have other ideas intentions instead. I would actualy much rather £2,000 cash than £3.500 pension but I know he has no means to do that he just doesn't have the money and doesn't want more debt either which I can completely understand.

But after talking to standard life who currently have his pension they've said there is absolutaly no way by which I can take this money out of the pension at it's cash equivelant value and put it into anything else other than another pension. Is this correct or is there any way I can have this money as cash instead as we could really do with it to buy a kitchen that isn't falling apart, the house we've just bought (we bought at auction as it was the best we could afford in a nice area) , we've got a lot of work to do on it.

Andy_L

Getting pention from divorce can I take it as it's cash equivelant instead?

No

EdInvestor

During a divorce all assets of both parties are up for negotiation. It's only recently that couples have been able to split a pension and transfer half of it to the other party.

In the past typically the pension and the property would be valued and the wife would take the house while the huisband would take the pension. Any adjustment in values would be done by changing the mortgage or a cash transfer.

Of course it's a bit of a problem if your ex has no money and doesn't want to borrow!

How old are the two of you?If either has hit 50, you can extract 25% of the fund right now.This would no longer be available from April 6, when the age goes up to 55.

That's about it.

jetta_wales

EdInvestor wrote: »

During a divorce all assets of both parties are up for negotiation. It's only recently that couples have been able to split a pension and transfer half of it to the other party.

In the past typically the pension and the property would be valued and the wife would take the house while the huisband would take the pension. Any adjustment in values would be done by changing the mortgage or a cash transfer.

Of course it's a bit of a problem if your ex has no money and doesn't want to borrow!

How old are the two of you?If either has hit 50, you can extract 25% of the fund right now.This would no longer be available from April 6, when the age goes up to 55.

That's about it.

Thanks for the input, I'm 25 and me ex is 36 so the 25% isn't an option unfortunatly. It's just frustrating that the money's there and it can be mine but I still can't get at it if I wish to invest it differently. I'm tempted just to let him keep it, since I won't be adding to it what's 3.5k going to be as a pension in 30 years time? A couple of pounds a week? He bought me out of our home at half the equity of the property which helped me buy a new house but althought it was about £120 a month from when he started it untill we split that we didn't have to spend there's still no point in taking it just for the sake of it is there?

EdInvestor

There doesn't appear to be much you can do right now.If it's any consolation in the very long term if neither of you remarry, both can claim a 60% state pension based on the other's NI contributions when you reach state pension age.

Andy_L

jetta_wales wrote: »

I'm tempted just to let him keep it, since I won't be adding to it what's 3.5k going to be as a pension in 30 years time? A couple of pounds a week?

Since its invested it should at least keep up with inflation so in real terms it'll still be worth £3.5k pa

jetta_wales

Andy_L wrote: »

Since its invested it should at least keep up with inflation so in real terms it'll still be worth £3.5k pa

3k pa? If pa if per annum then I'm confused as to how 3k now can become 3k per year in 30 years? I mean that would good but how does that add up? I do no pretty much nothing about pensions so maybe I'm completely missunderstanding you?

jh2009

If you go to this website.......

http://www.h-l.co.uk/pensions/interactive-calculators/pension-calculator

This is an online calculator. You can put £3,500 in here as an existing fund, enter your age, etc and it will give you a predicted benefit in either money terms, or in todays terms (giving an equivalent in todays money).

The figures only give an estimate based on estimated future investment growth, etc but might be helpful.

You can also vary retirement ages, paying in extra (if you wanted to).

Andy_L

jetta_wales wrote: »

3k pa? If pa if per annum then I'm confused as to how 3k now can become 3k per year in 30 years? I mean that would good but how does that add up? I do no pretty much nothing about pensions so maybe I'm completely missunderstanding you?

I suspect I misunderstood you.

Is the £3500 1/2 of his annual pension or 1/2 of what you've saved in a pension?

Re-reading I realise its the latter in which case yes, its worth very little now & will still be worth very little in 30 years, although investment returns over those 30 years should, at least, keep it up with inflation.
Assuming no changes in pension legislation in the interviening years then, if that is your only pension, you should be able to extract it as cash, rather than an annual pension, when you reach retirement age

jetta_wales

I couldn't find a way to make the pension calculator work for just one lump sum with no monthly amounts added untill retirment but if it will be the case that we can just take it as cash at retirement then that'd be ok and somewhat more worthwhile so that was definatly woth knowing, thanks.

I guess I've got to find somewhere to put it now for when the pension transfere order (I think that's what it's called) comes through with the decree absolute which should be quite soon now.

So thanks for the info all, I still don't get a tidy kitchen though but never mind :-) lol

jh2009

On the calculator you can..........

1) enter £3,500 under existing funds
2) enter your date of birth and that you are female
3) Set personal contributions/employer contributions to 0
4) Set your target retirement age

This should then be all you need to do to get an estimate of benefits at your selected retirement age if you are planning on making no further contribution to this Plan.

Of course as i've said before, its only an estimate, and the actual amount you get could be higher/lower.