Opening a pension after the age of 75?

chilswelluk

I am posting here on behalf of my friend who is 75 years of age and does not use the internet.  She has just divorced her husband and has been awarded 50% of the benefits from one of her husbands pension schemes.  The total value of the scheme is only 12k, which means her benefit will be 6k.  The problem is her husbands scheme does not allow former spouses to join the scheme and her 6k benefit must be transferred into a scheme in her own name.  She does not currently have a private pension of any kind and has run into the problem that many schemes have an age limit of 75 for opening.   It's really frustrating for her, as she is currently unable to realise the pension benefits that she has been awarded.  Ideally, once she has found a scheme to pay the 50% benefit into, she would like to cash in as much as she can.  Does anyone know what product may be suitable for her?

TVAS

Can the ceding scheme pay the benefit to her under triviality rules? 

Why can't the husband give her 6k in cash and he can keep his pension?

Annuity purchase. Tax free cash of 25% the rest as income paid gross. If she has any medical conditions she may be able to apply for an enhanced annuity. However the amount 6k maybe below the minimum purchase price for both standard and enhanced annuities.

If the ceding scheme does not help she should complain. When they give her a 10 page letter saying why they cannot help. She can complain to the Pensions Ombudsman.

However this is a !!!!!! divorce settlement because the solicitor did not take into account the age of the spouse and another settlement should have been done rather than splitting the pension.

She also needs to write to the State Pension people as she maybe entitled to part of her ex husband state pension. Good luck.

  

LHW99

Annuity purchase. Tax free cash of 25% the rest as income paid gross. If she has any medical conditions she may be able to apply for an enhanced annuity. However the amount 6k maybe below the minimum purchase price for both standard and enhanced annuities.

Would there be an option to decline tax-free cash so the whole amount is used to purchase the annuity? (just thinking)

TVAS

Why don't you Google it and by doing so you will have enhanced your understanding of pensions and at the same time finding out of any provider will accept a minimum purchase price of 6k? 

dunstonh

LHW99 said:

Annuity purchase. Tax free cash of 25% the rest as income paid gross. If she has any medical conditions she may be able to apply for an enhanced annuity. However the amount 6k maybe below the minimum purchase price for both standard and enhanced annuities.

Would there be an option to decline tax-free cash so the whole amount is used to purchase the annuity? (just thinking)

Yes but you wouldn't do it unless its a GAR.   

Takedap

Is the award 6K in total or 6K per annum?

chilswelluk

TVAS said:

Can the ceding scheme pay the benefit to her under triviality rules? 
Why can't the husband give her 6k in cash and he can keep his pension?

The ceding scheme cannot pay the benefit to her under triviality rules.  The pension is still in the former husbands name and the only way she can realise any benefit is to have her own scheme that it can be paid into.  But she has had problems finding a pension scheme because of her age.

As for the husband giving her 6k in cash instead of the pension, that is not up for discussion.  The court has already made the order and the degree absolute has been passed.

chilswelluk

Takedap said:

Is the award 6K in total or 6K per annum?

It's not per annum, but the total pension pot. husband has been drawing the pension down for many years and there is only 12k left in the pot.  So 6k is what she is entitled to.

xylophone

 husband has been drawing the pension down for many years and there is only 12k left in the pot. 

Is this scheme managed by one of the big insurers, Aviva say or Prudential?

If so, could  they not  open a stakeholder for this lady and transfer in the pension from the ex husband?

She could then immediately access the pension?

chilswelluk

xylophone said:

Is this scheme managed by one of the big insurers, Aviva say or Prudential?

If so, could  they not  open a stakeholder for this lady and transfer in the pension from the ex husband?

She could then immediately access the pension?

She has been through all of that and it's not possible.  Most of the schemes seem to have an age limit.

xylophone

https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/pension-tax-relief-eligibility#:~:text=If you are 75 or,not qualify for tax relief.

If you are 75 or older you can technically contribute towards a pension scheme, but your contributions will not qualify for tax relief.

This lady is not even seeking to contribute but merely to transfer in (which at any age would not qualify for tax relief).

She might ring the PAS for an initial discussion of her circumstances - I am wondering whether it might be necessary to appeal to the Pensions Ombudsman?