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Actuary - it can't be this much!?

(25 Posts)
squigglybook Wed 18-Dec-19 12:53:17

I need to use an actuary to value my ex's public sector pension and the Solicitor is saying it will be £1,500-2000 for him to instruct and then c.£2000 for the actuary themselves.

This is such a huge amount of money - has anyone managed to do this any cheaper as I can't afford it...

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waterSpider Wed 18-Dec-19 14:20:17

This will give you a ballpark idea of how much the value is likely to be:
www.2020financial.co.uk/final-salary-pension-transfer-calculator/

Actuary cost sounds rather more credible than the solicitor cost.

But are you just after a CETV or a detailed actuarial valuation?

squigglybook Wed 18-Dec-19 14:50:05

Thanks for the response. We need a detailed actuarial valuation to help us to equalise pension income on retirement.

Is it possible to instruct an actuary yourself do you know?

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timeforawine Wed 18-Dec-19 14:55:59

Not sure if this helps, you should be able to instruct yourself: www.actuaries.org.uk/find-actuary

timeforawine Wed 18-Dec-19 14:56:27

My husband is an actuary and says the fee quoted sounds about right for the actuarial work

MrsBertBibby Sun 22-Dec-19 06:46:28

Yes, the actuary fee sounds right, the solicitor fee sounds insane.

oldfatandtired1 Sun 22-Dec-19 09:47:30

Agree, actuary fee sounds right, solicitor fee not on. If I recall correctly my solicitor only charged her normal hourly rate? ie one letter @ 15 minutes.

Worth it though, I now have good pension provision!

squigglybook Sun 22-Dec-19 11:25:09

The fee is £340 an hour and they’re saying 2-6 hours depending on if there’s any back and forth

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lljkk Sun 22-Dec-19 11:31:18

TWO grand?! Does that cover both parties' pensions, or just one person's pension assessment?

Ss770640 Mon 23-Dec-19 18:32:16

Depending on length of marriage.

The CETV is multiplied by length of marriage / length of pension term.

Pensions in divorce is grey area. Subject to ongoing clarity in courts.

Tbh I don't see the need for an actuary

lljkk Mon 23-Dec-19 20:43:19

Bloody hell. I was reading that the actuary charges £1-£4k per pension pot to assess So that would be 4 pots if me & DH. My best pension will only pay (max) £4k/yr but from what I read would be valued at > £300k by an actuary. It's so insane.

oldfatandtired1 Mon 23-Dec-19 21:16:00

If there is a public pension there very much IS the need for an actuary! They’re very undervalued and CETV does not reflect their actual value. My ex found this out the hard way!

lljkk Mon 23-Dec-19 22:13:19

So that means you had a public pension that your ex undervalued during your joint divorce, oldfat? How much will it pay out when you retire & what was it valued at (CETV)? What do you think it should have been valued at?

I just can't get over the idea that my £4k/yr pension could be valued at £300k or more.

AustinRd Sun 29-Dec-19 17:50:33

Cash Equivalent Transfer Value (CETV) should be sufficient. Your scheme administrator should provide 1 per year free of charge. They typically take 3+ weeks to produce, public sector are notorious for taking considerably longer

Bluepeace Sun 29-Dec-19 17:53:06

Having seen some actuary's salaries posted on MN I'm not surprised it's that amount! I actually have no idea what one is though ha.

squigglybook Mon 30-Dec-19 09:48:48

Cash Equivalent Transfer Value (CETV) should be sufficient. Your scheme administrator should provide 1 per year free of charge

Totally not the case with a Public Sector pension. In a final salary scheme CETV is pretty much irrelevant and I’d be tens of thousands out of pocket.

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Underthefur Mon 30-Dec-19 23:36:03

My actuarial report cost £2000 + vat but meant that I got just under £100k of ( public) pension share in court so, yes, if you can possibly find the money it's worth it

squigglybook Tue 31-Dec-19 10:14:19

Thanks @Underthefur did you instruct them yourself or get a solicitor to do it?

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Underthefur Tue 31-Dec-19 11:46:42

@squigglybook my solicitor instructed them, I'm not sure if you can instruct directly as they are seen to be a "single joint expert" I.e acting for both parties fairly.

The firm I used is https://www.collinspensionactuaries.co.uk/pension-sharing-reports/ and there's a lot of good information on their website.

oldfatandtired1 Tue 31-Dec-19 11:47:04

There’s a useful thread called ‘Pension sharing actuary valuation?’ From August 19 which gives some good recommendations. Sorry, can’t work out how to link on iPad!

oldfatandtired1 Tue 31-Dec-19 11:48:27

Ah, I used Jim Sylvester from Collins Actuaries too. They were very good.

lovemenorca Tue 31-Dec-19 11:55:19

We paid £1000
Money very very well spent

notapizzaeater Tue 31-Dec-19 11:56:21

My mum paid about 2k (plus normal solicitors letters so no where near £2k for that bit). The actuary valuation added about £120k to what my dad was offering !

squigglybook Tue 31-Dec-19 14:13:24

My solicitor suggested 2-6 hours of time for sourcing actuary, instructing and liaising with them which is where the top figure of £2k come from. I’m thinking of sourcing myself and just asking them to send the letter then. Would that work?

I’m finding this aspect very confusing and have been looking for a clear answer for months..

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squigglybook Tue 31-Dec-19 14:13:42

And thank you for all your helpful answers

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