According to new research from Prudential, divorcees planning to retire this year can expect annual retirement income of up to 16 per cent lower than those who have never divorced.
In real terms that means expected annual retirement income is £16,300 for those who have divorced, compared with £19,400 for those who have never suffered the breakdown of a marriage, a difference of more than £3,000.
Prudential’s report has also highlighted the worrying possibility that some retiring divorcees may even find themselves with an income lower than the Joseph Rowntree Foundation’s annual minimum income standard for single pensioners.
If that was not bad enough, Prudential’s annual study also shows that around one in three people (32 per cent) who have been divorced expect to retire with debts, compared with just one in five (21 per cent) of those who have not been divorced.
While the overall divorce rate in the UK is actually falling, there is only one age group seeing an increase in rates; women aged 55 and over. Despite this being the only age group seeing an increase, a large proportion of women over 55 will be planning their retirement or already retired, so it is all the more important to obtain family law legal advice at the earliest possible opportunity to avoid finding yourself in debt when you retire.
As well as the emotional impact of divorce, the financial impact can be devastating if financial details are not discussed and agreed in a fair deal beforehand. Our family law specialists at Farleys are all members of Resolution, an organisation committed to non-confrontational divorce, and believe this is the best way to ensure a fair divorce settlement.
To speak to a member of Farleys’ family law team, please call 0845 287 0939 or complete our online contact form and we will get in touch with you.