New figures have just been released from Prudential showing that expected annual income for divorcees retiring in 2018 is £17,600 compared to £21,400 for those who have never been divorced. Perhaps as worryingly their study also shows that:-
the number of people getting divorced has started to rise again;
those over the age of 55 saw the greatest increase in divorce proceedings in more recent times;
people who have been divorced are more likely to retire in debt (23%) than those who have never been divorced (16%);
divorcees are more likely to have no pension savings at all when they retire (15%) than those who have not been through a divorce (11%)
Divorcees are less likely to reach the minimum standard for their annual income set by the Joseph Rowntree Foundation
On the plus side, for those couples who have divorced, they will generally retire with less debt (£30,500 compared with £36,900).
The key aspect for any couple when considering starting divorce proceedings is to take legal advice at the earliest possible opportunity. Whilst the here and now is always to the forefront of everyone’s mind the long term arrangements for their future financially should never be over looked, particularly in light of the outcome of this study. Given that the current climate provides more flexibility and accessibility to pension provision than ever before, it is vital to obtain the best outcome.
Pensions can be a couple’s most valuable resource so all the more reason to ensure that appropriate financial provision is put in place to avoid becoming the unwanted statistic seen in this study.
Going through a divorce can be a very challenging time but Farleys’ team of expert family law specialists can provide advice and guidance throughout. Call the team on 0845 287 0939 or contact us online.