Divorced women to benefit from Government change to pensions

The Government is going to make a change to pensions legislation which will help many divorced people, especially women.

From April 2009, restrictions which are currently imposed on people who receive part of their ex-partner's pension benefits will be scrapped. Currently, part of the pension benefits received by the non-member (usually the wife) cannot be taken before age 60 and cannot be taken as a tax free lump sum. In comparison, the member (usually the husband) can take benefits from age 50 and can take 25% as a tax free lump sum.

Andrew Tully, Senior Pensions Policy Manager at Standard Life 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. When going through an emotional upheaval like divorce or separation, pensions are unlikely to be at the forefront of people's minds. But starting afresh can have serious implications on your financial future, so it is crucial to take expert financial advice.'