Actuary - it can't be this much!?

[squigglybook]

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...

[waterSpider]

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]

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?

[timeforawine]

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

[timeforawine]

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

[MrsBertBibby]

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

[oldfatandtired1]

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]

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

[lljkk]

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

[Ss770640]

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]

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]

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]

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]

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]

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]

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.

[Underthefur]

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]

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

[Underthefur]

@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 www.collinspensionactuaries.co.uk/pension-sharing-reports/ and there's a lot of good information on their website.

[oldfatandtired1]

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]

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

[lovemenorca]

We paid £1000
Money very very well spent

[notapizzaeater]

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]

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..

[squigglybook]

And thank you for all your helpful answers