Annabel Andreou explains the different ways in which pensions may be treated in the context of divorce
Over a person’s working life, they will make National Insurance contributions which will later provide them with their state pension and additionally contribute to private pensions which are often set up by employers (workplace pensions) or by the individual.
There are various types of private pensions, but pensions will commonly fall into one of two categories: defined contribution schemes and defined benefit schemes.
1. Defined contribution schemes are valued based on the contributions which have been made to the pension pot and how the pot has grown over time. Various factors will influence how much a member will get upon retirement, but the amount is not set in advance and will be subje...
“Under a pension attachment order, payments are made directly from the member’s scheme straight to their ex-spouse’s nominated bank account.”
