Actuaries’ pension advice reports serve less than 5 per cent of divorcing couples in England & Wales annually, according to the Institute and Faculty of Actuaries (IFoA) latest report.
The latest thematic review published today titled ‘Pensions on divorce: expert actuarial advice’, includes input from actuaries of 12 organisations, and aims to look into the work of actuaries who advise on divorce-related pensions.
It found that actuaries provide court reports that advise divorcing couples on how to handle their pensions but they are used in less than 5 per cent of divorces in England and Wales each year, mostly in situations involving sizable defined-benefit pensions.
These reports, which are written by a small percentage of actuaries, provide detailed explanations of complicated regulations in language that is specific to each case.
Furthermore, there is no required qualification for an individual to provide pensions on divorce expert advice.
The report recommends that regulatory bodies hold discussions regarding the suitability of existing standards and the possibility of additional research.
Additionally, it suggests encouraging actuaries to follow standardised procedures to expedite the procedure and provide accessibility for all stakeholders.
Furthermore, by incorporating some actuaries’ best practices, reports might be made more consistently user-friendly by eliminating inconsistencies and the need for extensive explanations.
IFoA regulatory board lay chair Neil Buckley says: “It is critical that courts receive appropriate expert advice in relation to the often complex pension arrangements of divorcing parties. IFoA members, who benefit from extensive technical training and are subject to professional regulation, are particularly well placed for this type of work.”