Please can any one tell me of their experience regarding their husbands pension when taking into account all assets! I hears of offsetting but how does this work, is it the value of the pension now or how much pension as a couple we would receive per month at retirement . My H and I are both 50 and his pension is 1,500 per month at retirement , 750 for me if I am a widow? My solicitor told me it was how much monthly pension we would receive , multiply that by ten years, half would be my entitlement that could be offset , I have heard other people advised differently ?
I've never heard it calculated in that way. It's sometimes very dangerous for solicitors to advise on the £ of pension share and I always prefer to ask an actuary or IFA, but offsetting isn't an exact science and you can have 101 different formulas on how you calculate an offset and none would be wrong or right.
If its money purchase you need to deduct something from the CETV for early receipt and taxation, and if it's a final salary you need to cost a replacement annuity at the very least.
We had to get valuations on our pensions, based on what they had accrued during the time we were married. So it's really a case of finding out how much each pension pot is worth, and splitting the total between you. That is, if you are looking for a clean break.
The alternative is that you agree how much (percentage wise) of his pension you will be entitled to when he reaches retirement age. Since pension funds tend to increase significantly in the last couple of years before retirement, it will be worth a lot more then than it is now (unless of course he is close to retiring now).