One in six divorced individuals mentioned they didn’t realise their pension might be affected by splitting up, a survey has discovered.
Greater than a 3rd mentioned they made no declare on their former associate’s pension, in response to the survey of greater than 1,000 divorced individuals.
The analysis, carried out for Aviva, discovered 8% of divorcees would not have their very own pension financial savings – and had been counting on their associate to finance their retirement.
Because of divorce, 19% say they are going to be, or are, considerably worse off in retirement.
“No fault” divorce rule modifications got here into power in England and Wales in April – that means married {couples} can begin proceedings with out apportioning blame.
Aviva mentioned it was essential for {couples} who’re splitting as much as perceive the influence it should have on funds, together with pensions.
It pointed to Workplace for Nationwide Statistics figures exhibiting 103,592 divorces have been granted in England and Wales in 2020. Aviva steered the whole could improve within the coming years, following the no-fault divorce rule modifications.
The UK at present holds £15.2tn in family wealth and personal pensions make up about £6.4tn, or 42% of the whole, it added.
Males are aged 47 on common after they divorce and girls are usually aged 44 – ages at which the quantity of pension wealth constructed up could also be vital.
To complement their earnings after a divorce, 32% of divorcees surveyed mentioned they dipped into their financial savings, 20% used bank cards for on a regular basis residing bills and 18% borrowed from buddies or household.
Some additionally went out to work, having not performed so earlier than their divorce, or received a second job and 12% in the reduction of or cancelled their pension contributions.
Alistair McQueen, the top of financial savings and retirement at Aviva, mentioned: “It’s vital that, as a part of the separation course of, {couples} take time to consider and talk about certainly one of their single Most worthy belongings – their pension.
“It’s widespread that one occasion may have vital pension provision, and the opposite occasion could have little or none. Clearly, this might be a related think about any divorce.”
He mentioned there are a number of choices when coping with pensions at divorce and it could actually usually be a really advanced problem, including: “In addition to hiring a household lawyer, it could be advisable for {couples} to contact a monetary adviser to stroll them by means of the pension valuation and monetary course of.”
