Pension Sharing Order after a divorce

MollyA

Hi
I’m a recently divorced woman and will be 60 at the end of the year. I’m still in full time employment and will receive a small, but final salary, pension at age 61.5. As part of the divorce settlement I have a pension sharing order (£35,000) and I would like some advice on what is best to do with this. I have approached my employers, who will take it but treat it as a separate pension and are not offering much. I am also waiting for the pension sharing company to send me details of their offer, which will be a stakeholder pension. My question is, for someone who is completely in the dark about such matters is this quite straightforward with few options open to me, if so what are they, or should I seek advice from a financial adviser?

kidmugsy

MollyA wrote: »

Hi
should I seek advice from a financial adviser?

Very likely you should. But before you do it would be wise to get an estimate of the State Pension you will soon be due.

MollyA

I won't get my state pension until I'm 61.5. Why does this make a difference?

SallyG

Divorce can give you a better basic state pension - if your husband's got a more complete contribution record you can use that for a higher state pension income - any SERPS pension in his name has to be dealt with by a pension sharing order as part of the divorce financial order/consent order - otherwise it's lost to you.
Is it a final salary pension you're getting a £35k share of?
Your final salary scheme would treat it as a contribution to an AVC style money purchase pension? What will their annual charges be?
Can be useful to use the AVC bit as your pension commencement tax free lump sum, leaving the income producing final salary pension to generate income?
Will your final salary pension be RPI or CPI linked?

MollyA

Thanks for the info about the state pension, I got a quote before my divorce and so will ask for another now. I fear it is too late to get anything more out of the divorce settlement because I have the Absolute, although I am eligible for a full state pension so his contributions shouldn't make a difference should they? The pension sharing order cannot be used for an AVC unfortunately, it is in the small print. It is from Standard Life and is not final salary. My final salary pension is in the process of changing from RPI to CPI (I think it's that way round, whichever is more benficial to them!).

It is just knowing what to do first to sort out this pension- I will need every penny I can get for retirement I'm afraid