UK – LONDON: PENSIONS Trends and Developments Contributed by: Beverley Morris, HCR Law
(d) full value; (e) money purchase equivalent value; (f) open market value; and
The approach to be taken in any given case needs careful consideration, and the author always advises on using the services of pensions advisers to work with clients on what is the right approach in any given financial matrix. The features of a pension require detailed considera ‑ tion when assessing the needs of the parties post- separation and the transition to retirement where every pound of pension needs to be shared to make inroads into the provision of post-retirement income to meet need. Many people underestimate the amount of money they need to accumulate to fund an income, post-work, for the remainder of their life. * Nothing in this article should be construed as the author giving financial advice.
(g) cash equivalent transfer value (and variations). • Often, the stated value of a defined benefit scheme (such as Harry’s) does not reflect its true economic value. Consider: (a) annual inflation-linked increases; (b) guaranteed lifetime income; (c) no charges for administering the scheme; and (d) additional dependants’ benefits. What can the divorce court do with a pension? The court has three main options. • Make a pension sharing order (available since 2000). • Make an attachment order (available since 1997). • Use offsetting (as discussed above).
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