View more on these topics

Divorcees get the go-ahead to rebuild retirement funds

Divorcees who share their pensions will be able to rebuild their retirement saving when the simplified pension regime comes into operation next year.

Divorcees who are forced to share pensions with former partners will have greater flexibility in their retirement saving because the amount of the pension share will count against the recipient’s allowance rather than the donor’s lifetime allowance.

Under the current regime, only in very limited circumstances can donors rebuild their full rights if they have been cut as a result of a pension share arrangement ord-ered by a court in divorce proceedings. The Government’s rethink on pension sharing and divorce rules could benefit hundreds of thousands of people. Current rules restrict the way that individuals can rebuild their pensions after a pension-splitting divorce settlement.

Abbey for Intermediaries head of pensions and retirement Mike Brown says the new rules apply to pension-sharing arrangements granted both before and after A-Day although rights cannot be restored if benefits are taken before A-Day.

The recipient under a pre-A-Day pension share arrangement can also register the additional rights with a DWP registration form within three years of A-Day to increase their allowance.

Brown says: “The vast majority of divorcees can rebuild their pension rights, whereas previously this only applied in a small number of cases. Many people in that situation may not have considered the implications of A-Day on their divorce settlements so it is vital that IFAs are able to give the right guidance at the right time to ensure their clients’ interests are protected as far as possible.”


Keith Popplewell – A gender for change

In my past couple of articles, I have started to discuss the state of play in a number of important areas of pensions in which very recent or imminent developments are destined to have a significant effect on a large number of people.

Recovering companies boost bond funds

For the first time since 1998 corporate debt upgrades outnumbered downgrades last year. A record 39 companies regained investment grade status, dubbed rising stars by Fidelity, as companies repaired their balance sheets and the outlook for corporate earnings improved.BskyB and Vivendi Universal were among recovering companies in the European market, both of which were marked […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm