pension share or cash equivalent?

[Fio2020]

I separated from my husband several years ago and he bought me out of the house. I have been to a lawyer and I am trying to sort out the pension. My husband has offered me the cash equivalent of what a pension share would be. Should I take it? What are the benefits or downfalls?

I did receive an answer advising that a pension has more value than cash.

I was considering using the cash to pay off my mortgage or use it as a BTL.

I suppose I need to get a forecast from Pension companies. I'm in my 50's so the forecast won't be as great as if I was in my 30's.

Has anyone been in the same boat and have advice?

I'd personally take the money now as who knows what will happen in the future - don't want to be morbid but you might die before he retires for instance. Plus it seems a cleaner break. Get advice though and decide.

Is it his personal pension or is he in a final salary pension scheme? If it's a personal pension, I'd go for the cash equivalent. If it's a final salary pension scheme and the scheme has a deficit, then be careful, the cash equivalent may be reduced because of the shortfall and it may fall a long way short of the full value of your share of the benefits.

Under most pension sharing orders, the pension becomes the OP's benefit in her own right. Her ex-H dying before her should have no effect on her pension.

I was awarded a % share of exH's pension at the time of our divorce. ExH, being the total bastard that he is, declined to answer any correspondence from his pension company on the matter. I wanted to transfer my share into my own company pension scheme.

It took me 4 years to get the money. However, his pension company awarded me the % based on the time of the actual transaction, not when the judge awarded it, which meant I got £20k more than I'd anticipated.

I think what I'm saying is that you'll get more money from the pension share if you delay taking it, but if you want the money now then make sure you get a proper statement from the pension company.

Take the cash and invest it in a pension in your own name. Then you have a clean break and some security for the future.

I would say take into consideration when you hope to retire. Perhaps buying a btl will allow you to retire earlier. Or if the pension kicks in before your 66 retirement age you could retire sooner. Interest rates are poor so if you take cash you need somewhere to put it, I don’t think bank interest keeps up with inflation at the mo.

It really depends on your own pension arrangements, your health, pension age etc. Are you sure you can transfer the CETV into your pension scheme? What fees are there for implementing the pension share? Who's paying the fee?

You need proper advice, I'd start with speaking to his pension scheme (they should give generic advice) and your pension scheme.

A pension does not have more value than cash.

£100k in a pension is worth exactly the same as £100k in cash - it's what you do with that money going forward that counts.

Thank you all for your advice. I'm in the midst of talking to a private pension company I used to put money into and another private company to compare. Asking about charges for doing this was something I hadn't considered. I've also dropped an email to a pension advice company. I'll let you know how I get on.

Yes, let us know. I'm in the process of sorting out some old pensions I have so am interested. I don't know enough about it all and should find out more.