A study by insurers Prudential has shown that those who are planning on retiring in 2015 who have previously been divorced will have a lower expected retirement income than those who have never divorced.
The average expected retirement income is £15,700 for divorcees, compared with £17,800 for those who have never experienced a marriage breakdown. That’s a difference of £2,100 per year on average.
20% of divorcees will retire with outstanding debts, averaging £22,100, as opposed to a slightly smaller average debts for those who have never been divorced, of around £21,700.
The research also shows that divorcees approaching retirement are more likely to delay the date of their retirement than those who have never been divorced.
Furthermore, 19% of retires who have previously divorced are likely to live with an income below £9,500 – the Joseph Rowntree Foundation (JRF) minimum income standard for a single pensioner. Only 14% of non-divorcees expect to live below this line.
Claire Moffat, a pensions specialist at Prudential said:
“Unfortunately divorce is most likely among those ages 40-44, the period in many people’s lives when earning potential peaks and the most valuable pension contributions can be made.”
“The support of a professional financial adviser or retirement specialist should help ensure that any financial decisions taken have the least possible impact on incomes available later in life.”
If you require advice on wealth management following divorce, please contact one of our highly trained professionals.
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