How much does it cost to transfer money from fund

Still trying to decide what to do, but if I do accept stbx offer of £10k, if I could have that transferred out now from his pension, into a fund for me, how much does that cost ? Is there a charge ? And as 10k isnt really enough for a pension, can it just go into a high interest account so I can just use the cash in 20 years rather than have it as a pension ?

Any money direct from his pension now, must by law go into another pension arrangement. No pension provider will accept such money without your receiving financial advice from an authorised financial advisor. Either the financial advisor will charge you several hundred pounds for all the work that is necessary in setting up the pension or s/he will receive commission on the transaction. Commission will have the affect of reducing the investment that goes into the pension.

Most private pension investments go into policies that usually have entry charges of typically 5% (more if commission is paid). Effectively, the £10,000 would immediately reduce to around £9,500, even if you paid the financial advisor’s professional fees out of your own money.

If you were now aged 65 and had £10,000 in a pension fund to by a pension income with, it would buy you something between £40 and £50 per month of pension income for the rest of your life.

In addition, if the money is coming from a defined benefit pension scheme, we estimate that the costs of doing a pension share are between £2,000 and £3,000.

Oh that's not so good then. As it is a small amount, cant it just be put into a high interest savings account then ? Or is pension sharing just that ? sharing a pension for pension, not pension for cash ?

Pension to pension only I'm afraid. No high interest account options if the money comes from his pension.

Peter

Belle,

My understanding was that you had agreed between you that your husband should give you 10k WHEN he take his pension - whenever that may be.

He could give you this from the tax free cash lump sum he is entitled to take on retirement. This is a maximum of a quarter of the pension fund - so cd be a lot of money. My suggestion would be that you perhaps express this as a small share of his pension lump sum – or agree that it should be the equivalent of 10k now in however many years time … so it could actually be 15k but would buy what 10k buys now if you see what I mean. If you expressed it as a percentage of the fund then it would grow as the fund grows - as good ad investing it in a pension of your own without the costs.

Hadenoughnow

I just have got in such a state today and ended up in floods of tears, which is the first time I have done that in months and months.
The 'professionals' here have all indicated it isnt a fair deal but I dont have the energy to go down the full court route. I am happy to have the house, and the SM but I am very concerned about my future.
I had thought maybe I could transfer the 10k he offered into a fund now so it could accrue interest by 2028 but apparently I cant. I have thought of asking him to increase it to 15k but was afraid he would turn it down and then it would like I was backing down if I said ok then I'll have the 10k. Your suggestion is brilliant though and I could try and word it that way but I still dont think he will agree.
I'm tempted to just let it go, I cant allow myself to get into the state I did today. I just want it over with.
There isnt a massive amount between 10 and 15 and maybe I can just try and find some way of saving in the future and raising that myself.
I am tempted to ask him though if the email was worded correctly.

Belle,

((hug)) don't get upset. The professionals are just trying to make sure you have thought this one through - and there are other reasons for you to be thinking of accepting this deal ... not just financial. A lot of people ignore pensions and do not realise quite how valuable they are.

There is no harm in asking quite reasonably for a share that equates to 10k now. He may have a projection for his lump sum and it can be worked out quite easily .. or he may be prepared to include something that states that you get a sum at X date that is the equivalent to 10k's worth of pension fund now.

If you did know his CETV, that would be easier to work out. For example if it was £100k now, you would be asking for a 10% share ... to be paid from the lump sum ... when his pension comes into payment.

x Hadenoughnow