Divorcees to benefit from pension changes
Divorcees are to benefit from changes to pensions legislation that will lift restrictions on them either taking part of any of their ex-partner's pension benefits awarded to them as a lump-sum or benefits from an earlier age.
From April next year, restrictions currently imposed on people who receive part of their ex-partner's pension benefits will be scrapped.
Currently, part of the pension benefits received by the non-member cannot be taken before age 60 and cannot be taken as a tax free lump sum.
In comparison, the member can take benefits from age 50 and can take 25 per cent as a tax free lump sum.
Andrew Tully, senior pensions policy manager at Standard Life, said: "This change is long overdue and will be especially beneficial to women, who are more likely to receive pension benefits as part of a divorce settlement.
"Giving people more flexibility to take pension benefits when and how it suits them best is a welcome development."
