Receiving husband's pension

Hi everyone, after nearly 3 years we have finally reached a settlement. My husband is giving me 100% of one of his pensions valued at £60,000. I dont have any personal pensions of my own and I am hoping to transfer this pension into my own name, but with the same company. If I did this, could I start receiving the pension when I am 60 (in 2 1/2 years time). I wouldnt be able to add any more to the fund. What sort of fund should I opt for? If you have any experience of this or any advice I would be grateful. The information will be needed for the pension sharing Annex to the Consent Order.
Thanks

Hi Rosalie

Although pension sharing legislation prohibits you taking the pension before you are 60, as in practice the pension will be transferred into a pension in your own name, personally I doubt whether many pension providers are aware of this restriction and could implement it if they were.

To answer your questions about what sort of fund you should consider investing in requires giving financial advice and an individual must be authorised and regulated by the Financial Services Authority (incidentally, neither my firm nor I are authorised to give regulated financial advice). Any authorised advisor is obliged to know and understand quite a lot about a client’s financial circumstances needs and attitudes before giving any financial advice. Unfortunately, this adds to the cost of giving the advice as many financial advisers charge on a fee basis these days and you can expect their hourly rates to be similar to those of other professionals, such as lawyers and accountants.

Some will offer you the option of them receiving commission from the pension provider instead of charging you a fee. Although this can appear to be a more acceptable option, the commission earned will effectively come out of your pension fund, and will therefore reduce your potential pension income. Perhaps if it is not too late, it might be possible for the cost of this unavoidable advice to be part of your settlement.

Peter

Thanks Peter
I am sorry to be so ignorant, I really dont understand very much about how this works. Do you mean that I cant receive the pension until I am 60,even if it is part of the settlement? My financial advisor seems to think we can sort this out direct with the pensions company, as I would be staying with them. Unfortunately, my husband isnt being very helpful!
thanks again
Rosalie

No problem Rosalie.

Yes, in theory you should not be able to draw the pension until you are 60 (a pension sharing legislation restriction). I suggest that if this is an issue for you, your financial advisor should seek written confirmation from the pensions company about when you can take retirement benefits. This is an issue specific to pension sharing on divorce, so if your financial advisor does not do much work in this area, s/he may not be aware of the issue.

Peter