Silver splitters – a third of people unsure about splitting pensions in divorce

According to Press Release, a survey undertaken by Wesleyan Financial Services* shows that a third of people are unsure of what happens to their pension during a divorce and 16% wrongly think that their partner is not entitled to any of their pension wealth.

January can see an increase of divorce applications after a stressful festive period and the additional pressures of a cost-of-living crisis– but what many people can often overlook in a divorce are pensions. A survey by Wesleyan Financial Services shows that a third of people are unsure of what happens to their pension during a divorce and 16% wrongly think that their partner is not entitled to any of their pension wealth.

There is a growing number of people divorcing in retirement, with the number of over-60s legally separating doubling since 1993, according to data from the ONS. Divorce can pose a financial predicament for people who have built up a sizeable savings pot and pension wealth.

The survey highlighted:

• 36% of people are unsure of what happens to pensions during a divorce.
• 16% of people believe that their partner would not be entitled to any of their pension in a divorce.

Engaging with a financial planner at the start of the divorce process can ensure that the separation of assets, including pensions, is completed in a way that is tax efficient for all parties. Read our article, 'Dividing assets in a divorce' for more information.

If you would like to know more download a copy of our 7 Key Financial Planning Steps on Divorce or speak to a TPO Adviser.

This information is correct as at 19/02/2024

*Source: https://www.headlinemoney.co.uk/posts/silver-splitters-a-third-of-people-unsure-about-splitting-pensions-in-divorce-2032946d-968b-492b-8a5d-317017049e87?channel_id=press-releases