Help on what to do with pension received in divorce settlement

Malthusian

Teejanddeej wrote: »

I've just spoken to my present pension company and they said I could transfer the pension in but anything over £40,000 would be taxable and that I should speak to a financial adviser.

They are talking Horlicks. In virtually all cases no tax applies to transferring any amount of pension from one UK pension scheme to another. This includes Pension Sharing Orders. It sounds as if they have got confused with the Annual Allowance which is a limit on contributions, not transfers.

This is a good reason to use a financial adviser as they can tell you when the call centre operatives don't know their letters between Q and S from their Spanish archer, and deal with any nonsense like this on your behalf.

Also checked with the company my ex husbands pension is currently with and they said they send a follow up letter after 3 months but otherwise there's no time limit for me to choose where to put the pension.

The 4 month deadline is for the order to be implemented - so as long as they're happy to hang onto your share after the order has been implemented and your share has been carved out, until you decide what to do with it, that makes perfect sense.