Divorcees, who are forced to share their pensions with former partners, will soon be able to rebuild their retirement savings when pension simplification comes into action next year. They 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.
This change on pension sharing and divorce rules could benefit hundreds of thousands of people. Under present laws, donor’s can only rebuild their full rights, under very limited circumstances, i.e. if they have been cut as a result of a pension share arrangement ordered by a court in divorce proceedings.
Our view
All opportunities to rebuild one's life must be welcomed. Learn more about pension sharing on divorce in our website dedicated to this subject divorceandpensions.com.