Research finds women’s income likely to fall by almost twice men’s post-divorce
The financial services company Legal & General has found that following divorce, women are likely to have their household incomes fall by a third (33%), almost twice the decrease likely to be faced by men (18%).
The research suggests that this could be driven by a combination of several key factors, including that women are typically paid less than their male counterparts, with the average divorcing man four times as likely to be earning more than the woman in the relationship (74% versus 18%). Further, and significantly, women are more likely to waive their rights to a partner’s pension during a divorce (28% women versus 19% men) despite data showing that men currently below the State Pension age have a higher median active pension wealth (£25,300 men versus £20,000 women), and that a man’s median pension wealth for those aged over 65 is double a woman’s (£223,933 men versus £112,967 women).
This is consistent with previous research, which has found that women are, far too often, missing out on a proper assessment of their pension positions when they reach a financial agreement on divorce. Expertise in this area is vital, not just from a legal perspective, but also actuarial input. At The Divorce Surgery our entire focus is on reaching an arrangement which is fair to both spouses, and bringing in actuarial advice whenever it is needed. If you are in financial discussions on divorce and have not made provision for how pensions should be dealt with, please stop now and take advice. The cost of some expertise at this stage could be a fraction of the benefits you will receive in retirement.
Author Name: Editor
Published content by The Divorce Surgery Editorial Team.
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