Study Suggests Divorcing Women May Be Underprepared For Retirement

More than four women in five overlook their partner's pension when arranging a divorce settlement, according to AOL Money.

The comments focus on a Scottish Widows study which found that only half of women are saving enough for their own pensions.

The problem is exacerbated by the gender pay gap, although even women on higher incomes were found to be less likely to be saving enough for later life.

One-fifth of women in their 50s and 60s said they would need to rely on their spouse's pension, but if their marriage ends in divorce, this can leave them significantly under-financed.

Sarah Coles of AOL Money said women tend to underestimate the value of their partner's pension, with 84 per cent not considering it at all during divorce proceedings.

"If you are going through a divorce, it's vital to get a pension valuation from the provider, to understand whether pension savings are significant enough to merit more discussion when you are splitting the finances," she said.

Expert Opinion

Pensions are often one of the biggest assets in divorce settlements and it is vital that efforts are always made to take them into account. This is particularly important considering new pension reforms which are set to come into force next year and allow people collecting a pension to take it as a lump sum and spend it how they wish. <br/> <br/>"Anyone considering a separation or divorce needs to be aware of this and understand the potential implications which could emerge. Advice is an absolute requisite, as quite often pension arrangements can be complex and it is not always easy to decide how such assets may need to be split in the event of separation."