Many people find pensions confusing and complicated, if not a little stressful. If the need to sort out a pension is also related to a divorce or separation, then things can get very stressful. Hopefully this is where we fit in.
Historically there have been several ways that a pension can be shared following a separation, but nowadays a Pension Sharing Order is used. This is an order sealed by the Court which dictates the percentage of your former partners pension you will receive. Most importantly the pension is transferred into your name and will be directly paid to you. This takes away the need for you to rely on a former partner making payments to you, or you having to chase them to make payment. For this reason, Pension Sharing Orders facilitate a clean break between the parties which is considered the most appropriate outcome thereby removing the stress and emotional distress that are commonly experienced following a separation.
Pension Sharing Orders can be applied to all types of pensions, not only personal (private) pensions but also company pensions including final salary pensions. With the order you are free to use the money however you wish and can use or select any type of pension product from any provider. It is important to be careful at this stage, particularly in the case of a final salary pension. It isn’t compulsory to put your pension into drawdown. The final salary pension scheme rules may allow you to stay in the scheme in your own right. This means that you could receive a guaranteed index linked income for life which could be better and more suitable than taking the pot of money and transferring into a private pension.
Of course, it is likely that there will be other financial problems that you may face. You may need to move home or repay a mortgage. Other savings or assets may need to be considered. Do you have any specific health issues, do you want to leave a legacy to the rest of your family. Are the death benefits in drawdown an important consideration for you. These and many more issues will be considered in any advice we provide to you.
Perhaps most importantly we would suggest that you will need the help and advice from pension professionals who not only understand what your financial options are but equally understand the issues you are facing and therefore work with you giving you the time you need and helping you at every step of the way. Over the years we have received outstanding feedback from our customer particularly about our friendly, professional and customer focused approach. We never rush or push a customer, instead we give them all the information they need so that they are making informed decisions. We are very proud that the overwhelming majority of our customers have scored us 10 out of 10 in living up to the claim of offering a good old fashioned personal service via the internet.
If you are going through a divorce or separation or are in receipt of a Pension Sharing Order call us on 020 33 55 4827 and talk to one of our specialist pension advisers. You can also send an email to help@platinumifa.co.uk .There is no obligation to use us, but we are sure that you will find us willing to help you and answer any questions you may have.
Article writtten April 2020
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