Divorce costs £3,800 a year in retirement income.
Divorcees who plan to retire in 2018 can expect their yearly income to drop by £3,800 compared to those who’ve never divorced, according to research from Prudential which highlights the impact of marriage breakdown on pension saving.
Prudential’s annual study tracks the finances, future plans and aspirations of people planning to retire in the year ahead. For the Class of 2018, expected annual retirement income is £17,600 for those who have previously been divorced compared with £21,400 for those who have never experienced a marriage break up.
Prudential analysed the latest available divorce statistics from the Office of National Statistics. The figures, covering up to 2016, showed that the number of people getting divorced has started to rise again and that those over the age of 55 saw the greatest increase in 2016 compared to 2015.cent) who have been divorced expect to have incomes lower than the Joseph Rowntree Foundation’s benchmark of £192.27 a week, or £9,998 a year, compared with 12 per cent of those who have never been divorced.
With the stress a divorce inevitably brings parties understandably concern themselves mostly with the immediate problems such as where they are going to live and arrangements for their children. Pension arrangements and retirement may seem a long way off but should still be a priority.
The Prudential research highlights the importance of pensions for divorced couples whatever their age.
We work closely with Anne Hills and her colleagues at Centurion Chartered Financial Planners. Anne is able to advise on pensions and the wider financial implications of divorce. She offers an initial consultation at no charge. Please let us know if you would like to arrange an appointment with Anne.
For expert advice contact the Family Team at John Hodge Solicitors. We offer free initial appointments in all of our offices and we have clinics available in Weston-super-Mare on 1st Saturday each month, Bristol on the 3rd Saturday of each month and In Clevedon and Congresbury on the 1st Wednesday of the month.