Divorce can be a very stressful time in any person’s life, especially financially. When we think of divorce, we think settlement agreements, division of assets and child support, for example, but do we even consider retirement assets and the impact on retirement for the future?
According to UK law, pensions are considered part of marital assets and thus can be divided between spouses. This includes workplace and personal pensions.
This can cause a major drop in retirement income and could irrevocably set back your retirement planning.
“The financial impact of divorce can be devastating both in the short and longer-term, lasting well into retirement as divorcees experience expected retirement incomes of as much as 16% lower than those who’ve never divorced.” – Clare Moffat, pensions specialist Prudential – lovemoney.com
These are all very disturbing realities to be faced with when you have been saving your whole life for the golden years.
What can be done to salvage your retirement funds?
Your deVere adviser will be able to help with your new divorcee budget and set plans in place to cover the loss in future retirement income. email@example.com
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above