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Divorcees Face Reduced Retirement Income

Divorcees planning to retire in 2015 can expect to have an average of £2,100 less a year from their expected retirement income than those that stay married, research by Prudential suggests.

The survey of more than 1,000 people retiring in 2015 found that more than a third (35%) have been through a divorce. The average retirement income expected by divorcees is £15,700, while the average for those who have not experienced a marriage break-up is £17,800.

The £2,100 gap highlights the negative impact of divorce often has on people’s retirement savings.

The survey also found that:

  • divorcees retiring in 2015 will enter retirement with average debts of £22,100
  • those who have never divorced have slightly lower average debts of £21,700
  • divorcees are more likely to delay their retirement (13%) than those still married (11%).

Clare Moffat, pensions specialist at Prudential, said:

“Although the emotional impact of divorce may have long passed, it could come as a shock for people to find that it continues to impact them financially into their retirement. A pension fund is likely to be one of the largest and most complicated assets a couple will have to split in the event of a divorce.”

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