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Can anyone advise on pension sharing please?(4 Posts)
I don't have an appointment with the solicitor until next week but have his Cash Equivalent Transfer Value figure.
I just wondered how this works and what that figure means for me?
In principle the CETV is the amount it would cost, now, to buy the rights to his pension as it stands and no further input was made to it.
Main options you see --
to trade off this value against other assets (e.g. you get more housing equity, or savings, and he keeps the pension). But a future pension isn't worth as much now as a £ now, mostly.
to share the pension, so that you get a pension from it later in life.
What works best depends on other factors, such as the availability of other assets, how long each has until retirement, ability to make pension contributions (e.g. your ages).
We are both early 40s. He has a well paid job, I'm on benefits and he stayed in our rented house so there's no mortgage. He does have a car, all our furniture/appliances and a few grand in savings. The CETV is around 25k. Not sure if its reasonable/achievable to go for half that amount as a cash settlement and let him keep the pension and assets?
These are relatively small amounts that would quickly vanish if you have to go through solicitors in an adversarial way. So it's best to agree if you can!
Let's assume that most of that pension was accrued whilst you were married -- if it's a short marriage, then you would get to keep most of what you started with.
What you propose sounds like a reasonable idea for a plan - he keeps pension and you get some savings/assets as a balance. The amount of balance needed is harder to determine, but if you can agree it will be helpful. I don't know what kind of equation is used as being the right current amount for a pension not due for decades.
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