Can someone help with drawdown?
Mrs_pbradley936
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A few months ago I was asking about pensions and divorce on behalf of a friend.
Well she now has the E form from her soon to be ex and it says that he has £18K per annum in "draw down". He is still working and she knows that she cannot have any of his salary. He says on the form that he will retire in about a year.
What is this draw down and how much is the total pension pot likely to be?
There are ISAs and NS&I investments and that seems easier to understand as in they get 50% each.
Well she now has the E form from her soon to be ex and it says that he has £18K per annum in "draw down". He is still working and she knows that she cannot have any of his salary. He says on the form that he will retire in about a year.
What is this draw down and how much is the total pension pot likely to be?
There are ISAs and NS&I investments and that seems easier to understand as in they get 50% each.
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When you drawdown, you can pick the rate of withdrawal. So, the pot could be £36,000 or £360,000 or whatever. Think of drawdown as drawing money out of the cashpoint each month. The amount you draw doesnt give you a clue as to what the balance could be.
However, the solicitor should be asking for the pension value.
A money purchase pension shouldnt be a lot different.
Why hasn't the solicitor requested this information from her husband's side?
They have - but my friend can't understand it! It is about 3 inches thick and she got it a day or so ago. She has to wade through it all and give her comments to her solicitor. Perhaps she will find out as she goes through it but so far she is on the page which says £18k and the box for draw down has a cross in it.
She has to agree to a settlement but does not know how to interpret the paperwork.
Thank you - it is a set form because my friend had to fill in the same one. In her case it was easy because she does not have much other than her car, pension and some premium bonds. She had to get the house valued and send that evidence in but mostly she was putting N/A on all the boxes/pages.
On his where it says "is the pension in payment or drawdown" the box has an x in the drawdown bit. Lots about PPF Board but I think perhaps she is emotionally overwhelmed by it all and needs a couple of days to wade through it. I just asked because I thought someone would be able to say "Oh yes it is a percentage" but obviously not.