Investing a pension

I'm in court next week for my final hearing and will hear what share of the pension pot I will be awarded.

I'm not sure how pensions work so I'm a complete novice here.

I am currently unwell and claiming income based employment support allowance, living in temporary accommodation provided by the council as I was homeless and have no other assets.

My question is can I invest the pension into a fund and leave it there increasing in value (hopefully) without adding to it regularly? Obviously on the income I have, I won't be able to add to it at all. I thought I'd heard you have to add money to the fund regularly? Or not?

Hi,

Depending on the type of pension involved you may be able to take an external transfer to a pension in your own name.

This pension could be invested for your future and if invested correctly and monitored will potentially grow into a larger asset. Available at any time after age 55 to provide you with income (and possibly a lump sum).

You will not be obligated to make contributions into the pension so don't worry about this aspect.

However, before going for the external option, please check what (if any) internal options you have with the existing pension provider.

I hope that helps. For any more please feel free to PM me or post again.

Regards

Phil

Thank you, one pension is a company pension (exxonmobil) and I've been led to believe they don't allow ex's to keep a pension with them though am not certain on that. Would be good if they did though, as oil is a fair certainty of value! The other two pensions I will share is the 2nd state pension and an NHS pension already in payment. Which means little to me and I'm not at all sure how that works. That is of course, if I am awarded them which is anticipated.

Hi,

Thanks for this info.

It is becoming more unusual for private schemes to allow internal transfers. When working with clients I always check what is available before entering negotiations.

If it is an external transfer it will be dealt with as per my previous post.

The other two pension are definitely dealt with by way of an internal transfer and you will receive a pension credit. You will get pension income benefits (no lump sums) in your own name.

You mentioned being awarded some of the pension. Have you asked for actuarial input to help ascertain what that split should be?

Hope this helps some more.

Regards

Phil

As well as the pension are there any share options Maysie01?
My ex "agreed" to share his options 50/50.

Just to support previous posts - I had to transfer my share out of the original pension scheme. I stuck the lot in a stakeholder pension and have left it to simmer - the tough decision is whether to invest it in shares or something that might grow - pigs might soon fly? - or take fewer risks and be content with not much growth but lots of safety/much less risk of losing any of it.
I had to get used to the idea that this pension is my responsibility - not like the final salary automatic pension it was split from.

Out of interest Maysie - I often wonder if things have improved since I shared a pension - unlike mine has your solicitor found out for certain how your share of the pension will be dealt with -so that you can prepare/get info in case you need to transfer your share to another pension scheme - that's by far the most likely.
Will you know before the Final Hearing whether your share can be kept in the scheme?
Has the pension scheme completed Form P the pension inquiry form?
It's not compulsory but it's the standard form and the scheme is supposed to say in advance how they will deal with your share.
Don't worry I knew nothing at all and still managed to get through it - but it's better to know in advance and prepare if you need to,

oo maggie, that was all gobble-d-goop to me! I will ask about share options. It's my final hearing today so I will know how much I am getting by the end of today all being well then can do task two, finding how to place my pension share somewhere.

Phil, yes we have had full actuarial pension reports drawn up which is why I am fairly sure what sort of percentage I will be awarded as one would hope the judge will award me what will amount to 50% of retirement which apparently is the aim. There were two options considered both would give me 50% on retirement, I would prefer 77% of the company pension and nothing of anything else but the other option which xh will want is for me to have 60% of company pension and 100% of the state second pension and 100% of the NHS pension. I'm guessing I have no choice about which option to choose? Too late to ask as I leave for the court in half an hour!

I am absolutely dreading this whole day, but the pension share is my only asset as there is no property/equity/savings etc. I will be choosing safe options less interest options no doubt as it is all I have.

Good Luck Maysie - see you when you get back.