Our article discussed some possible unintended consequences of the changes including those affecting pensions on divorce. If it were not possible to transfer pension credit rights out of a final salary scheme there could be far reaching consequences for divorcing couples and limit the financial planning possibilities for divorce settlements.
DWP has now published the results of the consultation process and we are delighted that they have relented and decided to allow transfers from contracted out final salary schemes to non-contracted out schemes (i.e. including personal and stakeholder pension plans) after 5th April 2012.
From the perspective of a Chartered Financial Planner firm and Resolution accredited independent financial adviser (IFA) this is a welcome development since it will enable divorcing couples with pension assets to continue to avail themselves of the full possibilities for financial settlements on divorce.
Furthermore individuals will remain able to access their deferred final salary pension benefits in a more flexible way through a personal or stakeholder pension, or to assist with property purchase via self-invested personal pensions or loans to the employer via self-administered schemes will continue to be able to do so.
Expert Financial Solutions Ltd are independent financial advisers and Chartered Financial Planners and are experienced Resolution accredited IFA for pensions sharing on divorce. We offer advice on pension transfers, pension contribution strategy as well as alternative wrappers for tax efficient saving for retirement including stocks and shares ISA, onshore and offshore investment bonds, VCT and EIS.
Email info@expertfs.co.uk
Web: www.expertfs.co.uk
December 2010.
Expert Financial Solutions Ltd is authorised and regulated by the Financial Services Authority, our FSA reference number is 401295.