Women are likely to see their household incomes fall by a third in the year following their divorce, almost twice as much as men (33% women vs. 18%), according to research from Legal & General Retail Retirement.
- Women see their annual income fall by almost twice as much as men following divorce
- Women are significantly more likely to waive rights to a partner’s pension as part of a divorce (28% women vs 19%)
- Women are more likely to face financial struggle post-divorce (31% women vs 21%) and worry about the impact on their retirement (16% women vs 10%)
- Office for National Statistics data shows, on average, women already have a significantly smaller pension pot than men
There are many reasons driving this disparity, one being that women are typically paid less, whilst men who divorce are far more likely to have been the primary breadwinner in the relationship (74% men vs. 18%). This is why women will likely feel a greater degree of financial burden if transitioning to a single-income household.
Women are more likely to face financial struggles following a divorce from their partner (31% women vs. 21%) and this is particularly true for older women who divorce. One in four divorces occur after the age of 50 and women are significantly more likely to worry about the impact of their divorce on their retirement (16% women vs 10%).
While there is only a slight difference in the number of men and women who feel that the division of their finances at the point of divorce was fair and equitable (54% men and 49% women), the research has found that many women may be signing over their rights to a key financial asset. Women are significantly more likely to waive their rights to a partner’s pension as part of their divorce (28% women vs 19%). This could have a significant long-term impact, particularly as women tend to have less personal pension wealth, according to the most recent findings from the Office for National Statistics (ONS). ONS data shows that men currently below the State Pension age have higher (£25,300) median active pension wealth than women (£20,000). Meanwhile, for those aged 65 years and over, median pension wealth for pensions in payment for men is double that for women (£223,933 for men vs. £112,967).