My Ex Will Get My Pension When I Die!

[Gadgee]

I got divorced two years ago and until yesterday assumed that it was all done and dusted. At a meeting with my accountant yesterday it was suggested that I check my LV policy to see if my ex wife was named as the beneficiary who would contunue to receive my monthly pension when I die.

I checked and yes, she is to receive the payments.

I called LV and they tell me that it is impossible to change the policy so that my ex is no longer entitled to my pension payments. (I have remarried and would want the pension payments to go to my new wife on my death.)

I can't be the only person wanting to change this type of policy after divorce but Googling the topic does not produce much of use. I could arrange a meeting with a solicitor to get a ruling but am hoping that somebody has been through this situation and can comment from a position of knowledge. (I would prefer to avoid solicitors as I am still trying to repair my finances after the battering they took through the divorce!)

If it makes a difference, I am in Scotland.

Thanks in advance for any guidance

@reachingouttt the ChatGPT advice is talking about US pensions so it won’t be the same for the OP

Exactly what type of pension is it?

If it is an annuity or pension in payment from an occupational pension scheme (unlikely if LV) then it is possible that your beneficiary had to be set up when the pension started being paid to you. It’s been a while since I worked in the field but from memory it was common for annuity providers to define spouse as “the person you’re married to when the pension starts” as that was then built into the pricing. And as an annuity is a lifetime contract, it couldn’t be changed.

If it’s a different type of pension, or one you haven’t taken yet, then it’s weird they won’t let you change beneficiaries and I’d be looking to move providers.

I I imagine it was taken into consideration when you completed your divorce & financial settlement. So in changeable. Which seems completely fair to me.

Are you already receiving your pension? And what kind of pension is it?

It's possible that it's actually a joint life annuity, which pays out to you to start with and then to your ex when you're gone. If so, the amount payable will have been calculated actuarially when the pension was first drawn, based on the ages and possibly the health of two specific people, you and your ex. Essentially the actuaries work out what ongoing payments your pension pot can fund, which depends on how long they expect they'll be paying for. The figures would have been different if it was going to be payable to you and someone else. That's why this kind of pension isn't transferable, it's a done deal that can't be changed.

This may be totally wide of the mark but it would explain why you're not able to change anything.

OP, as the daughter of a discarded first wife, who was taken advantage of in every way, including financially, by her husband, I was glad that at least she got part of his pension, and still gets it now he's dead.

Try to look at the story from the other end.

Oh, and since you appear to be remarried a mere two years after getting divorced, any chance there was overlap?

I know it’s dead easy to change the beneficiary of a pension before you start to take the benefits (ie pre-retirement)

I think perhaps it could be as PP has said at the time at which you begin receiving benefits (start your annuity) it is set in stone as of that date as an annuity is a lifetime contract where the amount paid (for money purchase schemes at least) is based on actuarial calculation of likely lifespan.

you would think however, if this is the case that LV would have explained it.

Is it because you've already taken an annuity? So the annuity you were offered was based on your and her details- life expectancy etc, not your current wife?

Have you set up an annuity? IE is the pension in payment?

What type of pension do you have - is it a defined contribution plan where all money was added by yourself/your employer and the amount based on your contributions is what you get (as opposed to it being a defined benefits pension where the scheme specifies what £ you will be paid)? I am assuming this is the case anyway (D.C) - I work In Financial advice and I am also in Scotland. I would ring back and ask the same question again, get the person to double check with a supervisor, request the reply in writing after they tell you verbally also. It would be quite odd if this was the case but maybe not impossible on an older plan. You should be able to request a ‘nomination of beneficiary’ form and you can use that to update who you want any unused pension benefits to go to on your death. If something doesn’t sound right always ask again, sometimes you are just being given wrong info by a call centre employee who does not understand. I have got clients thousands of pounds in compensation from providers who have given incorrect information

Well said!!

That's so weird, it took me 2 minutes to change mine online.

there is free financial advise on the phone if you want . If they refuse to change it you can transfer your pension and benefits to another one who allows it . That is bonkers

If you call and the answer is still no, you could look at moving your pension elsewhere that will let you change.

The financial journalists on papers like the times or telegraph may be able to help?

OP seems to have ignored all posts suggesting the divorce finances included the pension split - therefore I assume it forms part of the settlement so of course it can’t be changed.

Your chat gpt has decided this is an American pension presumably you didn't indicate it was UK. So the advice is irrelevant for this case.

Splits aren't usually done in this manner but an amount transferred directly to the ex upon divorce. Also they did mention above that it wasn't subject to any order/split in the divorce.

That looks awfully American to me and so probably no use to the OP. I wouldn’t rely on ChatGPT for anything legal, or indeed financial…!

Your current wife may not get your private pension but she may be entitled to part of your state pension. I can't take a guess at how much this might be as the rules are complex and depend in part on exactly how your state pension is made up and your ages when you die. But to me it seems reasonable that whatever pension you leave behind should be split between your wives.

Exactly it sounds like it’s possibly annuitised, but OP hasn’t returned to comment. Just seems to want to rant about the unfairness of the situation, possibly of his own making!

RTFT

Can you transfer the whole pension to another pension provider or combine it with another pension and have your present wife named there?

To reply put @ before the user name.

Thanks to all who responded.

A couple of points just to clarify..

> Because all of contributions to my private pension pot were made long before I met my ex as was the case with payments into my investments, it was agreed early in the divorce proceedings that ex had no claim to the pension or to any of my other investments. There was no split as part of the settlement and this position was not contested by my ex.

> I have cashed in the pension policy in return for a monthly annuity. This would rule out transferring the policy now.

> I accept that had been more alert during very stressful and bitter divorce then I should have rembered that my ex stood to benefit from my death by receiving the monthly annuity. Maybe somebody could have prompted me?

> As regards me 'ranting about the unfairness', yes it is unfair. Let's say that my ex dies before I do, that would mean that nobody would get the monthly payments and that LV benefits having reduced my monthly pension payments to reflect their risk of having to continue paying the benificiary named on the policy after my death. They could change the beneficiary name now to be that of my current wife and have their actuaries crank out a revised annuity figure based on her profile if required.

> To Threelocusts, sorry to read about your situation but please don't use that experience to judge others without knowing the facts. Also, not sure if I am too happy with the comment of "a mere two years after getting divorced, any chance there was overlap".

> Cocobobo : Some good advice there which I shall follow up on.

Again, thanks to all who responded.

You’ve annuitised, you named your spouse to receive maybe a third or half of your annuity payment at that time, your choice, done deal.

You’ve not got a pension, you’ve got at annuity.

it can’t be changed, move on.

Hope she dies first if you’d rather LV to benefit rather than your ex wife living longer at getting some benefit.