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A passive index tracking fund has low charges, and one does not have to worry beating the proxy index such as FTSE (beating the market) which makes the fund managers in many cases to choose the wrong stocks and end up performing lower than the market. Compared to passive index tracking, an active index tracking is considered too much a gamble in delivering consistent investment success (Sorensen, Miller, and Samak, 2008).
Pension sharing would be very attractive to Charlotte given that is close to retirement and she would find challenging to build up a comparable fund in the period between now and her retirement. Unlike earmarking which requires the beneficiary of the earmarked pension to wait until retirement, Charlotte would be able to derive benefits in respect of the pension credit upon attaining the age of 55 (Price, 2003). Pension sharing will not be affected if Charlotte plans to remarry in the future as it would in the case of Earmarking.