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Scenario
Analysis - Pensions
Pensions are an important part of a family's financial security, and English law provides for pensions to be shared where appropriate in financial proceedings. |
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Pensions - Scenario Analysis Example #1
Mrs M consulted us. She was 52. Her husband was 54 and Chief Executive of an engineering company. He was likely to retire at 60 with a pension of half his final salary. He also had a private pension fund from years earlier. He argued that he had worked hard for his company pension and it was solely entitled to it. He proposed sharing the private pension fund.
Our solution:
We obtained a calculation that to replace half the future company pension benefit with a private pension fund would cost Mrs M £600,000. (This is a calculation called a "transfer value") If Mrs M was to keep all the benefit she would need not only all the private pension fund but also more to provide an investment income. We settled the matter with Mr M agreeing to consent orders with a pension sharing order giving Mrs M all the private scheme and 25% of the company pension.
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