A survey by Wesleyan Financial Services shows that a third of people are unsure of what happens to their pension during a divorce and 16% wrongly think that their partner is not entitled to any of their pension wealth. This can particularly affect ‘silver splitters’, those divorcing in their 60s and above.
What many people can often overlook in a divorce are pensions, the survey from the shows. A third of the people they questioned were unsure of what happens to their pension during a divorce and 16% wrongly think that their partner is not entitled to any of their pension wealth.
There is a growing number of people divorcing in retirement, with the number of over-60s legally separating doubling since 1993, according to data from the ONS. Divorce can pose a financial predicament for people who have built up a sizeable savings pot and pension wealth.
The survey highlighted:
- 36% of people are unsure of what happens to pensions during a divorce
- 16% of people believe that their partner would not be entitled to any of their pension in a divorce
Linda Wallace, director of Wesleyan Financial Services. said: “Many people don’t realise that a pension earned by one spouse is generally considered a joint asset, which means its subject to division in divorce. Pension pots can be one of your biggest assets and pension sharing will need careful planning. When people do divorce in later life they face the prospect of supporting two homes and any financial retirement planning made as a couple needs to be completely redone.
“Most couples don’t discuss pensions during divorce proceedings because they appear complicated. This is leading to many people – particularly women – missing out on future income which probably should have been theirs. A financial adviser can help talk through the most appropriate options to share pension assets.”
*based on a survey of 2,000 UK people.
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