Divorced women miss out on £5bn pension payments every year, says report

Seven in ten couples don’t consider pensions during divorce proceedings, leaving women
short-changed by £5 billion every year, according to new research by the life, pensions and investment company Scottish Widows.

The research shows that more than half of married people (56%) would fight for a fair share of any jointly owned property, and 36% would want to split their combined savings, but fewer than one in 10 (9%) claim they want a fair share of pensions. This is despite the average married couple’s retirement pot totalling £132,000 – more than five times the average UK salary. In fact, say Scottish Widows, more married people would be concerned about losing a pet during a settlement than sharing a pension (13% vs 9%).

The research also indicates that almost half of women (48%) have no idea what happens to pensions when a couple gets divorced, a fifth (22%) presume each partner keeps their own pension and 15% believe they are split 50-50, no matter what the circumstances.

Scottish Widows say that they would like to see a Government-led education campaign to address this issue, and help men and women better understand the legalities.

You can read the report here.

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Image of Scottish Widows HQ Edinburgh, by Qualit-E at English Wikipedia [Public domain], via Wikimedia Commons.