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.

Advertising

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."

FTAdviser BLOGS RSS

Latest Post  

Beware the unemployment ides of March: Jennifer Gilchrist

While today’s news that UK unemployment has fallen (to 2.45m) for the third consecut... read more

SIGN UP TO NEWS ALERTS




FT Adviser Blogs

FTAdviser's Blogs offer daily commentary and analysis, as our writers vent spleen about the latest developments impacting on the intermediary market.

To read the latest blogs click here


FTAdviser  Jobs  RSS