Divorce - pension sharing report

Justlurkin

Good morning,

Our pension sharing report suggest 2 different sharing options?

1 - Based on equity of value @ 60.88%

2 - Based on equity of income @58.88%

Naturally both parties want the bigger %. Can someone please explain the difference.

TIA

VyEu

first is so that you both have the same 'capital' i.e. amount in the pot.
Income equality is so that you both have the same drawdown in retirement.

TBagpuss

VyEu said:

first is so that you both have the same 'capital' i.e. amount in the pot.
Income equality is so that you both have the same drawdown in retirement.

Correct. Equity of income is more usual, the percentage being lower may be because  it he receiving party is younger than the paying party so has longer to go before reaching retirement age