Pension - final salary & 9 years to go. Advice please?

[54isanopendoor]

exH has a final salary pension.
there is 9 years to go.
the pot is currently about £165K
it would pay about £9 p/a now or 18K on retirement.
we are separating.
Qu is whether to split pension now or upon retirement.
Silly Qu but I'm not very financially literate -

If we split it now, is it worth less to each of us than if it were split in 9 years time?

Get some proper advice on this. It's too important not to.

In the meantime the Moneysavingexpert forum is a good source of advice.

Do note that there is no "pot" with a defined benefit pension, it is just a promise of future income. Some people transfer them out (highly regulated due to previous scandals) which means you end up with a lump ("pot") of money but no guaranteed payment of future income.

ah OK, hanks @HappyHolidai
there was me, hoping it was simple, ha ha...
the 'pot' bit I only know as we got a CETV figure so I know that's what it is at present but I know that about 15 years of it is final salary (the Co changed it) & so I thought the big whack of it hit in the final 10 years (it's a 30 year employment history). I called a IFA but they didnt' seem to know? (eek...)

I know that exH said he can retire from next month & could 'take out' £30K then but then he'd not have much pension later (& I'd be stuffed if we don't get legally Separated in time...)

What do they mean exactly? It's going to be more valuable in 9 years time as he's going to have had extra accrual. What exactly have you been presented with options for?

This is a complex area and would seek advice if you can. It might be quite expensive though - are there other assets?

Option A is Divorce now & get 50% of the pension pot as stands (165K at present would pay out 9K p/a, so 50% of that) OR wait 9 years & get 50% of total then - apparantly due to pay out £18K p/a so assume pot will have inc to £300K so I'd get 50% of that) Pension is only valuable asset. Lawyer says I should& have spent 18 years as Carer for our 2 disabled kids while exH has been able to work but as there are no other assets really then its all about the pension.

I'm not sure if you would get 50% in 9 years if you divorce now. What would happen if he remarried? Future wife would be entitled to some of the money accrued in the next 9 years. You definitely need advice.

But the £18k in 9 years takes into account 9 years of future contributions that you don't have a right to as you will no longer be married to him.

It won't make a difference surely. You can't get the pension until he's of an age to get it. You'd be looking to get a deferred pension order. Post on legal matters - there's more experienced people on there.

In a divorce relevant earning ability is take into account. That includes future earnings and the fact that OP's future earnings ability has been compromised by supporting his career.

Why are they giving the 2 choices? It does seem like a no brainier to take the higher value to me, if it isn't part of an overall package under negotiation etc

I have a trainee solicitor. The IFA person doesnt seem very clued up.
So I'm a bit in the dark. I am almost 55. H is 58. He can take his pension from next month. I hope he doesn't take out the £30K that he could at that point...
I could just stay married to him. I don't want to re-marry. I doubt he will but he could & he could give his pension to anyone else meantime so I think I should get it sorted now really.
As a Carer I am in receipt of Income Support. If I have savings of over 6K this reduces, over 16K then it stops. I can't even get a straight answer out of DWP or the IFA about whether it is ok if the pension money I am due goes straight into a pension rather than my bank account if that is ok or that counts as 'deprivation of assets'. It's got to the stage of things being signed & I'm worried I'm not getting it correct. The lawyer just wants it signed off as I get legal aid so they want it done without too much input / time involved.

Change IFAs if your one isn’t being helpful. Go to unbiased.com and find one who specialises in divorce and final salary/defined benefits. They can usually do everything on the phone, so you don’t have to live near them. You must get advice relating to the particular scheme rules and your circumstances. It’s too complicated for the internet to help you.

@Iwritethissittinginthekitchensink will they speak to me for free intially?
as soon as people hear I am on Income Support / Legal Aid they are not interested (as there won't be much money in it for them I suppose)

I've tried the CAB near me but they can't help either.