Pensions split in divorce, how does the tax free lump sum work?

[77Fee]

Say i get allocated £200k of my ex h's pension on divorce. As I understand things, this will get transferred to my own pot for me to access from age 55/57. Do I also get entitlement to take 25% as a taxfree lump sum does anyone know? This point is fairly crucial for mortgage affordability. Thanks in advance.

I don't see why not unless it gets pulled in the Budget. IIRC this was one of the questions asked by the new provider when I was transferring in. It seems odd they would ask if it wasn't an option. Check with your provider.

Thanks. I don't think the providers will talk to me given that I'm not the policyholder but I could do a general chat.

Shouldn't be caught out if they move the tax free threshold down but it's a good point for those with larger pots.

Find an accountant, they should know the ins and outs of any questions you may have.

At present - it becomes your pension, and then the normal pension rules apply. So yes you can withdraw up to 25% tax free.

Can you take the 25% at point of transfer? Or only at retirement?

STBEH weirdly refusing to offset pension but based on current agreement of 50/50 for house equity & savings I won’t have enough deposit to buy a suitable house for me & the kids
His mortgage capacity is much greater than mine so not a problem for him!
Wondering if me taking 25% of the pension might get round that? But thought you could only do it at retirement?

You can only take lump sum out of pension at 55

I would presume transferring 200k then that would be it and any lump sum would come out of your pot in your pension

57 (depending of year of birth).

Yeah, I think OP wants the lump sum NOW to make it possible to buy property she prefers, but she may not be old enough.

@DangerMouseAndPenfoldx government website says 55 but by the time a lot of us get to that age (I'm 33) it's probably have risen again. It will also depend on the rules of each pension provider.

@lljkk I think you are correct, it sounds like a great way to be able to afford to buy on your own until you realise your too young. Hopefully OP will find another option.

From the 6/4/2028, the age rises to 57.

Exactly. I am 51. I can’t access mine until I am 57.

I expect it will also rise further over the years (which is why I am advising my teens to save into ISAs rather than pensions).