career average earnings scheme?

Hi and wonder if someone might be able to help.

Stbx has a defined benefit average career earnings scheme. Has been paying in for nearly 20 years.

Is the CETV likely to undervalue the pension?

He is seeking to offset benefits against the equity in the FMH.

Is it likely to be costly to split the pension pot and create an external pension?

Thanks

Has he provided a CETV?

A lot of organsiations (especially the larger ones) will also provide details of the costs regime they use when splitting pensions (and will also tell you whether an external transfer is possible, or whther any transfer would have to be an internal one, which is the case with, for instance, Civil Service pensions.)

It's difficult to saw whether it would be costly, out of context, however in my experiene fees for splitting a pension can range between about £150 and £1,000 depending on the scheme. Where they give details, it is often given as 'up £x', so the actual costs are sometimes lower than those quoted.

So far as the undervalue id concerned, this depends a lot on the scheme, and again, whether it is worth while getting an expert to value it may depend on the total value - if it is worth £100K+ it may be worth spendin £750-£1,000 on getting it properly valued. If it's worth £25K it may not be

Hi and thank you for your reply.

The scheme in question is in excess of £200k. Basically he is saying that we should split it so that I have £100k to set up an external pension, offset against the £110,000 mortgage in the FMH.

However the equity left in the FMH may not be enough for me to house myself and 3 children, it may be about 170,000ish after taking costs into account.