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...

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