by Webmaster, 30th July 2021
Divorce is an emotionally charged event and can be an expensive one
The financial impact of divorce can last for decades, and Office for National Statistics (ONS) data shows women have smaller pension pots than men. Women are typically paid less, and men are more likely to have been primary breadwinners (74% men, 18% women)
Many women see household incomes fall by a third the year following divorce, almost twice as much as men (18%), are more likely to face financial struggles whilst transitioning to single-income households (31% women - 21% men) and worry about the impact on retirement (16% women - 10% men).
While there is little difference in the number of men and women who felt division of finances was fair and equitable (54% men - 49% women), women are more likely to waive rights to a partner’s pension as part of divorce (28% women - 19% men), according to recent ONS findings.
Meanwhile, men below State Pension age have higher (£25,300) median active pension wealth than women (£20,000). For those 65+, median pension wealth for ‘pensions in payment’ for men is double that for women (£223,933 men - £112,967 women).
People have so much to think about they often can’t focus on pensions, although these can be worth more than the family home.
Pensions are lifelong investments, normally inaccessible until age 55 (57 from April 2028). The value of (and income from) investments can go down as well as up, impacting on pension benefits.
Income is affected by interest rates at the time you take your benefits.
Tax legislation and regulation are subject to change. Always seek advice to understand your options on retirement.
The above was provided by Hartey Wealth Management Limited. Registered office: Hilliards Court, Chester Business Park, Chester, CH4 9QP. Tel: 0808 168 5866. www.harteywm.co.uk Hartey Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority