Case Study 3 – Am I Being Taken For A Ride?
Background
- Mr R approached us feeling particularly down as a jointly instructed equality of income calculation had not provided the results he wanted.
Concerns
- He felt that this was a particularly bad deal for him.
- The pension share would mean he would lose approximately £100,000 of his pensions.
- This meant that from an initial ownership split of 70:30 during the marriage he would end up with only 30% and his ex wife would receive 70%.
What We Did
- We reviewed the pension sharing report with our actuarial expert and spotted that the IFA involved had taken a number of short cuts:
- The second state pensions had not been valued at all.
- No attempt had been made to independently value the pensions.
- An assumption was being made that annuity rates would stay the same.
The Results
- Based on the figures provided we estimated that £120,000 and hers at £16,000.
- Therefore, the overall pot was being undervalued by approximately £136,000.
- By extrapolating the figures it became clear that the actual deal on the table was more like 52% to his ex wife.
- Our client was able to relax knowing that the deal was not as bad as he first feared.
What Our Clients Say...
I learned a lot from him about the different pension options available...
“I came across Phil O’Connor of WhiteWell Financial Planning last year whilst browsing Google after I started divorce proceedings and needed some financial advise.
Throughout that time and up to the present – Phil has been incredibly helpful in providing me with information and giving me guidance on certain procedures regarding Pension Sharing Options and setting up a new pension. I learned a lot from him about the different pension options available. He very patiently answered many and varied questions and helped me in taking the right decision – finally! I wouldn’t hesitate in recommending him and his company.”
R.S. – North Wales
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