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

Pension reflections: Retirement's biggest moments of 2025

Pension reflections: Retirement's biggest moments of 2025

What can we expect to see for pensions next year?

Jenna Brown
clock 18 December 2025 • 15 min read
Women, wealth, and worry: How to close the retirement gender gap

Women, wealth, and worry: How to close the retirement gender gap

Julia Peake explores the retirement gender gap and suggests how it can be closed...

Julia Peake
clock 16 December 2025 • 4 min read
Senior pension figures question HMRC's 7.7 million salary sacrifice uptake figure

Senior pension figures question HMRC's 7.7 million salary sacrifice uptake figure

‘It doesn't take much of an error in those figures to have no benefit whatsoever’

Jenna Brown
clock 15 December 2025 • 8 min read