Highlighting the impact that divorce can have on pension saving, research from pension provider the Prudential indicates that divorcees planning to retire in 2018 can expect their yearly income to drop by £3,800 compared to people who have never divorced.
The results of Prudential’s 11-year study indicate that for those retiring in 2018 the expected income for those who have previously divorced to be £17,600 compared to £21,400 for those who have never divorced.
In addition, according to figures released by the Office of National Statistics, the number of those seeking a divorce rose in 2016, with divorces of those over the age of 55 showing the greatest increase.
Prudential’s research indicates that 15% of divorcees are likely to have no pension savings at all when they retire compared to 11% of those who haven’t been through a divorce.
Clare Moffat, pensions specialist at Prudential, commented ‘divorce can have a huge financial impact on people’s lives. Many may not realise that the cost of divorce can last well into retirement, as divorcees expect retirement incomes of nearly £4,000 less each year than those who have never been divorced. A pension fund is one of the most complex assets a couple will have to split so anyone going through a divorce should seek legal and financial advice to help them do so’.
If you are considering getting divorced or are in the process of doing so, it is important to seek specialist advice in relation to financial settlement, particularly where pensions are concerned.
If you would like advice relating to divorce and financial settlement our Family team will be happy to assist.
Please contact our Family team on 01865 244 661 (Oxford) or 01869 252 244 (Bicester).