Pensions
Claim child benefit to protect your state pension
To be eligible for a full state pension you need to have paid or received credit for National Insurance Contributions (NIC) for a minimum of 30 years. For each year less than 30, your full state pension is reduced by 1/30. That means that if you’ve paid NIC for 15 years only your full state…
Read MorePensions and Divorce: Pension sharing/splitting
Pension sharing is available where divorce proceedings began on/after 1st December 2000. The court will split the pension fund between the 2 parties, and the relevant part will be transferred from the scheme member to a pension fund in the name of the ex spouse. The scheme member’s pension is reduced by the value of…
Read MorePensions & Divorce – earmarking
Earmarking was introduced for petitions for divorce filed on/after 1st July 1996. Under this method the court allocates a specified portion of the scheme member’s lump sum, death benefits and income entitlement to the ex spouse. This is evidenced by an order from the court to the trustees. The ex spouse will then receive the…
Read MorePensions on divorce: offsetting
Offsetting is the most common option used when dealing with pensions on divorce since it allows a completely clean break between the divorcing parties. Under this method the transfer value of the pension is included with the value of all other matrimonial assets. The assets are then divided between the 2 parties so that the scheme member…
Read MorePensions and divorce: what are the options?
For many divorcing couples the pension may be the second biggest asset after the matrimonial home. The Pensions Act 1995 first introduced the requirement to take pensions into account on divorce under English Law. This requirement had been in place in Scotland since The Family Law (Scotland) Act 1985. A pension is valued using the…
Read MoreWill my state pension be enough?
Don’t think that if you don’t save for your retirement that the state will help in any significant way. Basic state pension at the time of writing is £5,587.40 pa which is a measly £466 per month. Anyone who thinks that’s enough for them to live the life style they need, well hat’s off to…
Read MorePensions: a 20% off sale!
There are some attractive tax advantages to be had from investing in a pension. Are you aware of the pension tax benefits? If you’re not aware, read on to see…. Let’s assume you want to invest £100 per month in your pension. If you’re a basic rate taxpayer paying tax at 20%, you actually pay in £80 per month…
Read MoreToo young to start saving for retirement?
A bit like death and taxes, one thing we can all be certain of is that we will get older. When you’re young retirement seems so far off that it’s not high enough on your priorities to want to do anything about it. Yes you know you need to get round to saving at some…
Read MoreJargon Buster: What on earth is an annuity?
If you’re not sure what the Queen Mother has to do with annuities, then please read on. It will all become crystal clear! An annuity is a means whereby a capital sum is turned into income for your lifetime. You will often have heard the term in relation to pensions. What happens is that the capital…
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