Divorcees who are planning to retire this year can expect annual retirement incomes of up to 16 per cent, or £3,000, lower than those who have never divorced. Research carried out by Prudential also shows they are more likely to be in debt.
Prudential’s annual study has the past ten years tacked the finances, future plans and aspirations of people planning to retire in the year ahead. It shows that for those retiring in 2017 expected annual retirement income is £16,300 for those who have previously divorced compared with £19,400 for those who have never suffered a marriage break-up.
Careful planning is required to ensure capital and income needs are met when divorcing at any point but particularly after retirement when income is no longer being generated through work – Brighton and Hove Law specialise in this area and work closely with actuaries and independent financial advisors in all cases where pensions are at stake. Often after the matrimonial home pensions can be the next biggest asset and should never be ignored.
You can read more on the Family Law Week website.