Co-op in talks to split up £9bn pension fund (2024)

FAQs

How do you group pensions together? ›

Pension consolidation involves shopping around for a provider you can trust, with competitive charges and the right investment options to suit your needs. Once you're certain it's right for your finances, you can ask for your existing pots to be transferred to the same place.

Pension sharing is one of the options available on divorce or the dissolution of a civil partnership. It provides a clean break between parties as the pension assets are split immediately. This means that each party can decide what to do with their share independently.

Consolidating your pensions could help you take advantage of better investment options. Consolidating could mean getting rid of higher-charging plans. Your administration will be easier if you don't have to deal with multiple pension plans. It may not be worth consolidating pensions if you're on a defined benefit plan.

In terms of how much either spouse is entitled to, the general rule is to divide pension benefits earned during the course of the marriage right down the middle. Though that means your spouse would be able to claim half your pension, they are limited to what was earned during the course of the marriage.

What would usually be required is for you to cease those different pension accounts. You would take that money essentially back to accumulation phase, and then you'd start a new larger pension with the combined balances or part thereof of those combined balances.

Pension income splitting is a joint election on each spouse/common-law partner's tax returns each tax year. You can allocate up to 50% of your eligible pension income to your spouse or common-law partner with no need to actually transfer funds.

In California, all types of retirement benefits are considered community property, which allows CalPERS benefits to be divided upon a dissolution of marriage or registered domestic partnership or legal separation.

If you are designated as the beneficiary of the pension, or if your settlement agreement, court order or QDRO specifically identifies your right to “survivor benefits,” then you should be able to continue receiving your share of the pension benefits after your ex-husband's death, he said.

The first thing to decide is your desired retirement income. How much pension do you need to live comfortably? For a quick estimate, try the '50-70' rule. This suggests that you should aim for an annual income that is between 50% and 70% of your working income.

What are the disadvantages of taking a lump sum pension? ›

Taking a lump sum out of it early on could affect your income for the rest of your life considerably. Pension value can decrease: If you choose to withdraw and hold the money in cash, for example in a savings account, the value can decrease in real terms.

Alternatively, you can use a pension locator like the government Pension Tracing Service to find your pensions. This is a free pension tracker service that searches a database to find the names and contact details of your pension providers.

Open an account with the bank or brokerage that will hold the retirement funds you're rolling over. Contact the 401(k) administrator from your previous account and request a direct rollover. Make sure to follow any instructions from the new account administrator about completing the transfer.

You normally only have 12 months from re-joining the LGPS to opt to join them together, unless your employer allows you longer. You have to be paying into the LGPS at the time of making the election to join your LGPS benefits together.

At PensionBee, we do things differently. We charge a single annual management fee, which is taken directly from your pension pot. If you're making a special request, we may charge fees for additional services. There are no hidden provider fees or platform fees with PensionBee.