Female divorcees to benefit
29/08/2008
Many divorcees, especially women, are set to benefit from a change to pensions legislation enacted by the Government, says Standard Life.
Currently, part of the pension benefits received by the non-member cannot be taken before age 60 and cannot be taken as a tax-free lump sum.
In comparison, the member can take benefits from age 50 and can take 25 per cent as a tax-free lump sum.
The restrictions imposed on non-members will be scrapped from April 2009.
Standard Life senior pensions policy manager Andrew Tully said: “This change is long overdue and will be especially beneficial to women, who are more likely to receive pension benefits as part of a divorce settlement. Giving people more flexibility to take pension benefits when and how it suits them best is a welcome development."
