Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Is anyone good at working out value of pension/compound interest?

(8 Posts)
GeneralBobbit Mon 22-Aug-16 11:18:02

Partners pension. 13 years of pension, currently over £1000 being added to it every month with school contribution

Approx 3 years at £700 added to it
Approx 4 years at £780 added to it
Approx 6 years at £1000 added to it

Need to know rough amounts so if we split he keeps it all and I take cash out the property instead

I've literally no clue where to start

GeneralBobbit Mon 22-Aug-16 11:52:00


Marmight Mon 22-Aug-16 12:14:28

Are you married?

If you are you, i think you need a 'CETV' which gives a value of it and it is an asset of the marriage.

If you aren't married, you can't take his pension into account, unless of course he is happy for you to do so.

GeneralBobbit Mon 22-Aug-16 12:22:44

Yes, married. I just need a ballpark. It will be amicable.

Marmight Mon 22-Aug-16 12:49:12

Compound interest doesn't come into pension valuations.

I assume that this is a final/average salary pension as you mention school.

You definitely need a CETV to give you an idea of the size of the fund.



GeneralBobbit Mon 22-Aug-16 12:55:39

Ok, I've just looked up cetv and it seems really complicated and you have to pay for a valuation.

So I'm not doing that right now. Is a good starting point just to add up the contributions?

DadDadDad Mon 22-Aug-16 16:08:52

If he's in a defined benefit scheme (final salary - education sector is one of the few places where they still can be found), then the "true" value is the value of the retirement benefits he has accrued to date, which is not a straightforward calculation and would be sensitive to the assumptions made. However, I think the scheme should be able to provide a current transfer value on request, although I suspect it won't be as high as a "true" value.

If he's in a defined contribution scheme (eg buying units), then it should be relatively straightforward to find a value - eg find a statement with a recent fund value showing and then add on any more recent contributions.

More crudely, if for example he paid £700pm for three years, 12 years ago (12 is in the middle of 13, 12, and 11 years ago), and you wanted to say "well, if I had put those amounts in a savings account and earned 3% per annum, what would they be worth now?", then you could roughly say 3 x 12 x 700 x 1.03^12 = 35,900. [1.03 for 3% interest, 12 years]. You could do the same with the other periods of contribution, but again this relies on the assumptions you make.

Cabrinha Mon 22-Aug-16 20:05:39

If he works in a school, is he a teacher? I'd say it's unlikely to be a DC scheme. Much more likely s combination of DB Final Salary and DB CARE.

In which case what he has paid in won't help you much!

As for CETV - where did you find the information that there would be s charge for this? From a general search or specifically for his scheme? My company were quite happy to provide one for free, and it took about 6 weeks to arrive.

There may not be a charge.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now