New Research Suggests People Are Unaware How Pensions Impact On Divorce
Once again we are told too many are losing out on pensions when they divorce.
Over and over again studies are published demonstrating the importance of securing pensions advice on divorce, and how many people are missing out.
New research from Aviva suggests that 15% of divorced people didn’t realise their pension could be impacted by getting divorced and more than a third (34%) made no claim on their former partner’s pension and it was not included as an asset in the settlement when they did divorce. Worryingly, almost one in twelve (8%) divorcees say they didn’t have their own pension savings as they were relying on their partner to finance their retirement.
As a result of divorce, as many as one in five (19%) say they will be, or are, significantly worse off in retirement.
To supplement their income following a divorce, a third of divorcees (32%) said they dipped into their savings; one in five (20%) used credit cards for everyday living expenses; a similar number (18%) borrowed from friends or family and just over one in seven (15%) regularly sold clothing/toys/other household items just to make ends meet. One in eight (12%) also cut back, or cancelled, their pension contributions – putting their future retirement income further at risk.
If you’re getting divorced, or know someone who is, please get pensions advice. A pension is for many their main matrimonial asset, and the way it is treated on divorce can be the difference between a comfortable retirement or real hardship.
Full analysis here from Aviva: Thousands risk pension poverty after divorce
Author Name: Editor
Published content by The Divorce Surgery Editorial Team.
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