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Confused re Pension Sharing

  • merry
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07 Jun 10 #207816 by merry
Topic started by merry
I would be grateful for some help with this:
My STBX has a final salary pension (NHS) which the Actuary says should be split to give me 43%.
I am a bit confused about what'equality at retirement' means.
I am 60 and can have the pension share on DA later this year. He is 10 years younger than me, so will not retire until he is 60 or 65. What I am not sure about is, if he is going to continue working for another 10 or 15 years, and continues to build up his pension, won't he be better off than me at retirement?

  • TBagpuss
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07 Jun 10 #207817 by TBagpuss
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Yes, if he continues to build it up, but the split is looking at sharing the pension as it is now, not as it might be in 10-15 years time.

Equality at retuirement usually means looking at what you will each get assuming you each retire at the same age, and taking into account factors such as your gender, health & whether or not you smoke.

I assume that either you also have pensions of your own, or the pension was partly built up before the marraige (or both) and this is why the % is less than 50%.

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07 Jun 10 #207824 by merry
Reply from merry
Thank you for your prompt reply.
So does that mean that the amount I get on DA (43%) stays the same forever, or is it linked to inflation?

  • Peter@BDM
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10 Jun 10 #208395 by Peter@BDM
Reply from Peter@BDM
Merry

You will become a deferred member of the NHS pension scheme, roughly the same as someone who has left the NHS. Your pension will therefore benefit from the automatic increases through to retirement (and beyond).

Peter

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