Charlene Young: Retirement options after pension sharing orders

'Clean break'

clock • 4 min read

Pension sharing orders can help achieve a “clean break” when it comes to dividing the finances of a divorcing couple. But what happens when an ex-spouse or civil partner approaches their own retirement – does a pension credit affect their options in a SIPP? Charlene Young explores the key points for advisers

When a client receives a pension sharing award from their ex-spouse, the funds are known as a "pension credit". In England, Wales and Northern Ireland, a pension credit is calculated as a percentage of the ex-spouse or civil partners pension fund(s) and the value transferred to a pension in the client's own name. In Scotland, the pension credit can also be noted on the sharing order as a monetary amount. The client will be able to transfer to another scheme of their choice if the credit is from a personal pension or private sector occupational scheme. Where the credit is coming from a...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why documentation is king in the world of SSAS

Why documentation is king in the world of SSAS

'SSAS documentation - it isn't just best practice or a fiduciary requirement'

Caitlin Southall
clock 04 July 2025 • 4 min read
Steve Webb: Sceptical advisers should not give up on pensions dashboard

Steve Webb: Sceptical advisers should not give up on pensions dashboard

‘A big mistake to underestimate the impact it will have’

Jenna Brown
clock 03 July 2025 • 3 min read
What role can advisers play in closing the gender pension gap?

What role can advisers play in closing the gender pension gap?

Advisers are uniquely placed to influence the gender pension gap

Olivia Perry
clock 02 July 2025 • 7 min read