Pensions


#1

Finally after 2 years I think I am divorced.I swore on my decree absolute a couple of weeks ago which then had to go to court as it was well over a year since decree nisi.Know it sounds silly but do I get something like papers to say I'm divorced??? Yesterday I got pages and pages of information about my ex's pension asking me where I want my % and details of my financial advisor.Really struggling to understand form and don't really know what to do.Having parkinsons I'm guessing need to think carefully what pension scheme will benefit me and my family the best.I really struggle to explain myself,I made a couple of calls trying to get advice but words just all get muddled and I feel stupid(thats if I don't cut them off cos of shaky hand),also concentration is bad Any advice please!!


#2
Hi Dotty,
In my opinion I recko the most important thing you should do is to get yourself an independant financial advisor. If you get one who lets you choose how he is paid, you can choose either a fee based on the time he spends on your case or a system of his getting commission from the firms he puts you in touch with.
The most important thing is that you have cofidence in the advisor.

#3
Hi Weedy,
Thanks for the reply.I really don't know where to start.Haven't a clue about how to find the right financial advisor,is fee based on time, or him getting commission better?? Do all advisor's charge about the same or are there hidden expensives I should look out for.Are there advisor's who specialize in long term illnesses?

#4
Be careful in choosing an independent financial advisor!

Firstly get him/her to put the charges in writing before you sign anything. Secondly if you use an independent advisor, make sure they are truly independent and not trying to push one pension provider because they get a bigger cut in commission. Most important off all is you think carefully about what type of pension you want. Given your still young a Drawdown pension would be a better option for you. With a drawdown pension you take the profit from the total pension investment as income each year and keep the total pension fund invested until your a bit older. This is a win win for you, because by delaying converting the total pension fund into an annuity, will mean you get more income in later years. The problem you will face if you convert the total pension fund to an annuity now while your young, is the income you get from it will be greatly reduced. Sure they will offer you ill health enhancement but to be honest its not worth much, unless of course you got a Bankers pension fund! I made a big mistake of converting one of my former employer pensions to an annuity at the age of 46. On a total pension pot of £72,000 my monthly annuity income enhancement for ill health was a whopping £3.77p a month.

So for what its worth, my advise would be invest your pension pot into a pension drawdown scheme. Its a bit like sticking your money in to a building society account and then just drawing the interest you make as income every year. The downside is the drawdown scheme is linked to the stock market, and that can go down as well as up. But to be fair even if you were to buy a full pension annuity, what they offer will be influenced by not only your young age but also current low interested rates.

Now i bet that's really confused you, ah well at least this advise is free.

Take you time to work out what's best for you and don't let anybody rush into signing pension plans until your ready.

Good luck and well done for sticking with the divorce. I know the last 2-3 years have been tough, but hopefully this is the start of a better life for you and the boys.

best wishes
Stephen

#5
Dotty, have you thought of going to the Citizens Advice Centre. They will be able to go through all of the forms you have been sent, help you fill them in if you want and also put you in touch with an Independent Financial Advisor. All of this is free

#6
This link takes you to the CAB information about pension advise which pebble is refering to. http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/getting_financial_advice.htm

#7
Also this link will take you to the Governments pension advisory service. They give free advise on the types of pensions availabile and any legal stuff like tax, age of retirement etc etc.
http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/getting_financial_advice.htm

#8
I don't know about pensions but I do about divorce....I just want to say a big well done Dotty...and I hope the years ahead are all good ones. Happy Divorce girl!!!!!

Glenchass

#9
I used an independent financial adviser when I took early retirement but it didn't cost me anything as he was paid commission by the investment company.

#10
Thanks for all the advice,have read though and I have a financial adviser coming here in the morning.He sounded nice and down to earth,easy to talk to.
Thanks blueeyes for the information about different pensions and personal experience you have had with your pension.
Last few years have been tough and seems to have taken ages to get this far but finally things are getting sorted.Still have the house to sort out (that ex is still in) and get him to put on the market.
Solicitor called today telling me she has my divorce papers so I'm officially divorced,now got to think if to change back to maiden name(don't like idea of having different surname to my 3 sons).
Hate having to make important decisions like pension myself especially when having 3 teenage boys future to think about.Having Parkinsons,not knowing how I will be tomorrow let alone in 10-15 years.
Thanks again for the advice,fingers crossed parkinsons wont be to bad tomorrow and I manage to get words out right and not be muddled.
Take Care xxx