Pension transfer post divorce

Fathertedfan

I am currently contributing to a personal pension which is a company pension scheme and is run by Aegon. I make monthly contributions of 2.5% and my employer 5% of my salary. I only returned to work after the children were grown up so there is not a lot of money in this pension.

I have very recently become divorced and part of my divorce settlement is the transfer of 100% of two pensions from my ex husband worth approx £93K.

I need to advise these pension funds within 30 days where I wish to transfer the funds as they do not permit internal transfers.

I am 57 but do have other investments so will not be relying totally on these pension pots and my state pension to provide for my retirement.

I am wondering if i should simply transfer the £93K into my Aegon pension fund and take a more active role in the management of the Aegon pension (Thus far I have just advised them of my risk profile and allowed them to manage it) or should I seek financial advice on an alternative scheme for the £93K bearing in mind costs to administer a fund which is relatively modest I imagine for most IFA's.

Any advice would be most gratefully received

Thanks

Linton

At 57 you dont have an enormous amount of time for the difference between the Aegon portfolio and something better from an IFA to make a lot of difference. Also, I sense you are not highly motivated to fight for a slightly greater % in the return.

So in your position as far as you have told us, I would transfer the new money into the employer pension if possible. Also, you may find that your employer's pension has lower charges than any personal pension you may get, especially with advice.

One thing you could consider is to use the increased money as a justification for increasing the risk level of your investments. However, counter to that, at 57 you may be considering de-risking your pension fairly soon.

xylophone

Or transfer to another personal pension which you can access as required under the new rules in the next tax year and afterwards?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf

http://www.hl.co.uk/pensions

http://www.cavendishonline.co.uk/pensions/transfer-your-pension/ might be worth a look?

SallyG

Worth checking this?
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

"What is happening to inherited or derived rights for those reaching State Pension age after single tier starts in 2016?
• It is proposed that there will be transitional arrangements. In some circumstances, people who have made National Insurance contributions under the current system will still be able to derive or inherit state pension from a late or former partner."

Fathertedfan

Apologies for delay in responding. Finding my way around the site slowly. Many thanks for your helpful responses. I have appointments to see 2 Financial advisors this week and a call out to Aegon so all should become a bit clearer after these conversations.

SallyG

PS - about the 30 day deadline - my experience is that if you can't come to a decision/provide the info by then the whole process simply goes on hold until you're ready to go - keep donor provider informed natch - the regs allow the donor pension admin to make the choice for you if after a long time you fail to provide the destination info but I've never heard of that happening.