Divorcees who are due to retire this year will be 16% worse off than married individuals, according to research from a leading financial services company.
Prudential surveyed 1,000 people poised to retire in 2017 and found divorcees are expecting average annual retirement incomes of £16,300 – £3,100 lower than those who have not divorced their partner (£19,400).
Furthermore, 32% of divorcees are expected to retire with the burden of financial debts, compared to 21% who have not been divorced.
Clare Moffat, pensions specialist at Prudential, said:
“Deciding on living costs and childcare at the point of divorce is difficult enough, but a pension fund is likely to be 1 of the most complicated assets a couple will have to split in the event of a divorce.
“Retirees who divorced a while ago may want to consider seeking updated professional financial advice on any post-retirement plans they have made, particularly in the light of recent changes to pension legislation.
“There are also important differences in divorce law between Scotland, and England and Wales. Legal advice in the early stages of separation is therefore crucial.”